Correlation Between Old Dominion and Abacus Life,

Can any of the company-specific risk be diversified away by investing in both Old Dominion 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 Old Dominion and Abacus Life, into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Old Dominion Freight and Abacus Life, 9875, you can compare the effects of market volatilities on Old Dominion 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 Old Dominion with a short position of Abacus Life,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Old Dominion and Abacus Life,.

Diversification Opportunities for Old Dominion and Abacus Life,

-0.25

Correlation Coefficient

Old Dominion  Abacus Life,

Very good diversification

The 3 months correlation between Old and Abacus is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Old Dominion Freight and Abacus Life, 9875 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Abacus Life, 9875 and Old Dominion 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 Old Dominion Freight 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, 9875 has no effect on the direction of Old Dominion i.e., Old Dominion and Abacus Life, go up and down completely randomly.

Pair Corralation between Old Dominion and Abacus Life,

Given the investment horizon of 90 days Old Dominion is expected to generate 4.44 times less return on investment than Abacus Life,. In addition to that, Old Dominion is 1.93 times more volatile than Abacus Life, 9875. It trades about 0.01 of its total potential returns per unit of risk. Abacus Life, 9875 is currently generating about 0.13 per unit of volatility. If you would invest  2,451  in Abacus Life, 9875 on September 29, 2024 and sell it today you would earn a total of  460.00  from holding Abacus Life, 9875 or generate 18.77% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Old Dominion Freight  vs.  Abacus Life, 9875

Old Dominion Freight

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Old Dominion Freight has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest inconsistent performance, the Stock's technical and fundamental indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Abacus Life, 9875

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Abacus Life, 9875 are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite quite weak essential indicators, Abacus Life, may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Old Dominion and Abacus Life,

The main advantage of trading using opposite Old Dominion and Abacus Life, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Old Dominion 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.

The idea behind Old Dominion Freight and Abacus Life, 9875 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.