Correlation Between Where Food and Abacus Life
Can any of the company-specific risk be diversified away by investing in both Where Food and Abacus Life 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 Where Food and Abacus Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Where Food Comes and Abacus Life, you can compare the effects of market volatilities on Where Food and Abacus Life 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 Where Food with a short position of Abacus Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Where Food and Abacus Life.
Diversification Opportunities for Where Food and Abacus Life
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Where and Abacus is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Where Food Comes and Abacus Life in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Abacus Life and Where Food 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 Where Food Comes are associated (or correlated) with Abacus Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Abacus Life has no effect on the direction of Where Food i.e., Where Food and Abacus Life go up and down completely randomly.
Pair Corralation between Where Food and Abacus Life
Given the investment horizon of 90 days Where Food Comes is expected to generate 0.6 times more return on investment than Abacus Life. However, Where Food Comes is 1.66 times less risky than Abacus Life. It trades about 0.12 of its potential returns per unit of risk. Abacus Life is currently generating about -0.06 per unit of risk. If you would invest 1,138 in Where Food Comes on September 12, 2024 and sell it today you would earn a total of 61.00 from holding Where Food Comes or generate 5.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Where Food Comes vs. Abacus Life
Performance |
| Timeline |
| Where Food Comes |
| Abacus Life |
Where Food and Abacus Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Where Food and Abacus Life
The main advantage of trading using opposite Where Food and Abacus Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Where Food position performs unexpectedly, Abacus Life 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 Abacus Life will offset losses from the drop in Abacus Life's long position.| Where Food vs. Meridianlink | Where Food vs. Enfusion | Where Food vs. PDF Solutions | Where Food vs. ePlus inc |
| Abacus Life vs. FG Annuities Life | Abacus Life vs. Globe Life | Abacus Life vs. MetLife Preferred Stock | Abacus Life vs. MetLife Preferred Stock |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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