Correlation Between Ab High and First Trust
Can any of the company-specific risk be diversified away by investing in both Ab High and First Trust 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 High and First Trust into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab High Income and First Trust Managed, you can compare the effects of market volatilities on Ab High and First Trust 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 High with a short position of First Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab High and First Trust.
Diversification Opportunities for Ab High and First Trust
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between AGDAX and First is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Ab High Income and First Trust Managed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Trust Managed and Ab High 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 High Income are associated (or correlated) with First Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Trust Managed has no effect on the direction of Ab High i.e., Ab High and First Trust go up and down completely randomly.
Pair Corralation between Ab High and First Trust
Assuming the 90 days horizon Ab High Income is expected to generate 1.05 times more return on investment than First Trust. However, Ab High is 1.05 times more volatile than First Trust Managed. It trades about 0.17 of its potential returns per unit of risk. First Trust Managed is currently generating about 0.1 per unit of risk. If you would invest 697.00 in Ab High Income on December 3, 2024 and sell it today you would earn a total of 9.00 from holding Ab High Income or generate 1.29% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Ab High Income vs. First Trust Managed
Performance |
Timeline |
Ab High Income |
First Trust Managed |
Ab High and First Trust Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ab High and First Trust
The main advantage of trading using opposite Ab High and First Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab High position performs unexpectedly, First Trust 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 First Trust will offset losses from the drop in First Trust's long position.Ab High vs. Prudential Real Estate | Ab High vs. Texton Property | Ab High vs. Real Estate Ultrasector | Ab High vs. Nexpoint Real Estate |
First Trust vs. Inflation Adjusted Bond Fund | First Trust vs. Tiaa Cref Inflation Link | First Trust vs. Cref Inflation Linked Bond | First Trust vs. Schwab Treasury Inflation |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume |