Correlation Between Ab Global and Ab Large

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

Diversification Opportunities for Ab Global and Ab Large

0.5
  Correlation Coefficient

Very weak diversification

The 3 months correlation between GCECX and APGCX is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Ab Global E and Ab Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Large Cap 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 E are associated (or correlated) with Ab Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Large Cap has no effect on the direction of Ab Global i.e., Ab Global and Ab Large go up and down completely randomly.

Pair Corralation between Ab Global and Ab Large

Assuming the 90 days horizon Ab Global E is expected to generate 0.57 times more return on investment than Ab Large. However, Ab Global E is 1.77 times less risky than Ab Large. It trades about 0.03 of its potential returns per unit of risk. Ab Large Cap is currently generating about -0.01 per unit of risk. If you would invest  1,631  in Ab Global E on September 26, 2024 and sell it today you would earn a total of  41.00  from holding Ab Global E or generate 2.51% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy99.21%
ValuesDaily Returns

Ab Global E  vs.  Ab Large Cap

 Performance 
       Timeline  
Ab Global E 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Ab Global E has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong fundamental indicators, Ab Global is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Ab Large Cap 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Ab Large Cap has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong fundamental indicators, Ab Large is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Ab Global and Ab Large Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Ab Global and Ab Large

The main advantage of trading using opposite Ab Global and Ab Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Global position performs unexpectedly, Ab Large 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 Ab Large will offset losses from the drop in Ab Large's long position.
The idea behind Ab Global E and Ab Large Cap 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.

Other Complementary Tools

Global Correlations
Find global opportunities by holding instruments from different markets
Portfolio Holdings
Check your current holdings and cash postion to detemine if your portfolio needs rebalancing
Earnings Calls
Check upcoming earnings announcements updated hourly across public exchanges
Crypto Correlations
Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios