Correlation Between AB International and Balincan USA

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both AB International and Balincan USA 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 AB International and Balincan USA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AB International Group and Balincan USA, you can compare the effects of market volatilities on AB International and Balincan USA 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 AB International with a short position of Balincan USA. Check out your portfolio center. Please also check ongoing floating volatility patterns of AB International and Balincan USA.

Diversification Opportunities for AB International and Balincan USA

-0.03
  Correlation Coefficient

Good diversification

The 3 months correlation between ABQQ and Balincan is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding AB International Group and Balincan USA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Balincan USA and AB International 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 AB International Group are associated (or correlated) with Balincan USA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Balincan USA has no effect on the direction of AB International i.e., AB International and Balincan USA go up and down completely randomly.

Pair Corralation between AB International and Balincan USA

If you would invest  0.07  in AB International Group on September 6, 2024 and sell it today you would earn a total of  0.01  from holding AB International Group or generate 14.29% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy1.59%
ValuesDaily Returns

AB International Group  vs.  Balincan USA

 Performance 
       Timeline  
AB International 

Risk-Adjusted Performance

7 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in AB International Group are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Even with relatively inconsistent basic indicators, AB International reported solid returns over the last few months and may actually be approaching a breakup point.
Balincan USA 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Balincan USA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Balincan USA is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

AB International and Balincan USA Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with AB International and Balincan USA

The main advantage of trading using opposite AB International and Balincan USA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AB International position performs unexpectedly, Balincan USA 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 Balincan USA will offset losses from the drop in Balincan USA's long position.
The idea behind AB International Group and Balincan USA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.

Other Complementary Tools

My Watchlist Analysis
Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like
Competition Analyzer
Analyze and compare many basic indicators for a group of related or unrelated entities
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Stocks Directory
Find actively traded stocks across global markets
Funds Screener
Find actively-traded funds from around the world traded on over 30 global exchanges