Correlation Between Ab Global and Brinker Capital

Can any of the company-specific risk be diversified away by investing in both Ab Global and Brinker Capital 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 Global and Brinker Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Ab Global Risk and Brinker Capital Destinations, you can compare the effects of market volatilities on Ab Global and Brinker Capital 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 Global with a short position of Brinker Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Global and Brinker Capital.

Diversification Opportunities for Ab Global and Brinker Capital

0.0

Correlation Coefficient

Ab Global  Brinker Capital

Pay attention - limited upside

The 3 months correlation between CABIX and Brinker is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ab Global Risk and Brinker Capital Destinations in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brinker Capital Dest and Ab Global 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 Global Risk are associated (or correlated) with Brinker Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brinker Capital Dest has no effect on the direction of Ab Global i.e., Ab Global and Brinker Capital go up and down completely randomly.

Pair Corralation between Ab Global and Brinker Capital

If you would invest  0.00  in Brinker Capital Destinations on October 4, 2024 and sell it today you would earn a total of  0.00  from holding Brinker Capital Destinations or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	4.76%
Values	Daily Returns

Ab Global Risk  vs.  Brinker Capital Destinations

Ab Global Risk

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ab Global Risk has generated negative risk-adjusted returns adding no value to fund investors. In spite of inconsistent performance in the last few months, the Fund's forward indicators remain fairly strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Brinker Capital Dest

Risk-Adjusted Performance

0 of 100

Insignificant

Over the last 90 days Brinker Capital Destinations has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Brinker Capital is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Ab Global and Brinker Capital

The main advantage of trading using opposite Ab Global and Brinker Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Global position performs unexpectedly, Brinker Capital 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 Brinker Capital will offset losses from the drop in Brinker Capital's long position.

The idea behind Ab Global Risk and Brinker Capital Destinations 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.

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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.