Correlation Between WBI BullBear and AdvisorShares
Can any of the company-specific risk be diversified away by investing in both WBI BullBear and AdvisorShares at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining WBI BullBear and AdvisorShares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WBI BullBear Value and AdvisorShares, you can compare the effects of market volatilities on WBI BullBear and AdvisorShares and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in WBI BullBear with a short position of AdvisorShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of WBI BullBear and AdvisorShares.
Diversification Opportunities for WBI BullBear and AdvisorShares
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between WBI and AdvisorShares is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding WBI BullBear Value and AdvisorShares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AdvisorShares and WBI BullBear is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on WBI BullBear Value are associated (or correlated) with AdvisorShares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AdvisorShares has no effect on the direction of WBI BullBear i.e., WBI BullBear and AdvisorShares go up and down completely randomly.
Pair Corralation between WBI BullBear and AdvisorShares
Given the investment horizon of 90 days WBI BullBear Value is expected to generate 4.87 times more return on investment than AdvisorShares. However, WBI BullBear is 4.87 times more volatile than AdvisorShares. It trades about 0.05 of its potential returns per unit of risk. AdvisorShares is currently generating about 0.2 per unit of risk. If you would invest 2,736 in WBI BullBear Value on September 2, 2024 and sell it today you would earn a total of 334.00 from holding WBI BullBear Value or generate 12.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 8.09% |
| Values | Daily Returns |
WBI BullBear Value vs. AdvisorShares
Performance |
| Timeline |
| WBI BullBear Value |
| AdvisorShares |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
WBI BullBear and AdvisorShares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WBI BullBear and AdvisorShares
The main advantage of trading using opposite WBI BullBear and AdvisorShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WBI BullBear position performs unexpectedly, AdvisorShares can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in AdvisorShares will offset losses from the drop in AdvisorShares' long position.| WBI BullBear vs. FT Vest Equity | WBI BullBear vs. Northern Lights | WBI BullBear vs. Dimensional International High | WBI BullBear vs. Matthews China Discovery |
| AdvisorShares vs. FlexShares Ready Access | AdvisorShares vs. PIMCO Enhanced Low | AdvisorShares vs. RiverFront Strategic Income | AdvisorShares vs. AdvisorShares STAR Global |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the CEOs Directory module to screen CEOs from public companies around the world.
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