Correlation Between Alphacentric Symmetry and Ab Global

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

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

Diversification Opportunities for Alphacentric Symmetry and Ab Global

0.2

Correlation Coefficient

Alphacentric Symmetry  Ab Global

Modest diversification

The 3 months correlation between Alphacentric and CABIX is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Alphacentric Symmetry Strategy and Ab Global Risk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Global Risk and Alphacentric Symmetry 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 Alphacentric Symmetry Strategy are associated (or correlated) with Ab Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Global Risk has no effect on the direction of Alphacentric Symmetry i.e., Alphacentric Symmetry and Ab Global go up and down completely randomly.

Pair Corralation between Alphacentric Symmetry and Ab Global

Assuming the 90 days horizon Alphacentric Symmetry is expected to generate 43.5 times less return on investment than Ab Global. But when comparing it to its historical volatility, Alphacentric Symmetry Strategy is 1.06 times less risky than Ab Global. It trades about 0.0 of its potential returns per unit of risk. Ab Global Risk is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  1,522  in Ab Global Risk on October 25, 2024 and sell it today you would earn a total of  14.00  from holding Ab Global Risk or generate 0.92% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Alphacentric Symmetry Strategy  vs.  Ab Global Risk

Alphacentric Symmetry

Risk-Adjusted Performance

6 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Alphacentric Symmetry Strategy are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Alphacentric Symmetry is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

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 latest weak performance, the Fund's forward indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Pair Trading with Alphacentric Symmetry and Ab Global

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

The idea behind Alphacentric Symmetry Strategy and Ab Global Risk 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.