Correlation Between Alphacentric Symmetry and Ab Sustainable

Can any of the company-specific risk be diversified away by investing in both Alphacentric Symmetry and Ab Sustainable 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 Sustainable 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 Sustainable Thematic, you can compare the effects of market volatilities on Alphacentric Symmetry and Ab Sustainable 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 Sustainable. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alphacentric Symmetry and Ab Sustainable.

Diversification Opportunities for Alphacentric Symmetry and Ab Sustainable

0.23

Correlation Coefficient

Alphacentric Symmetry  Ab Sustainable

Modest diversification

The 3 months correlation between Alphacentric and SUTCX is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Alphacentric Symmetry Strategy and Ab Sustainable Thematic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Sustainable Thematic 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 Sustainable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Sustainable Thematic has no effect on the direction of Alphacentric Symmetry i.e., Alphacentric Symmetry and Ab Sustainable go up and down completely randomly.

Pair Corralation between Alphacentric Symmetry and Ab Sustainable

Assuming the 90 days horizon Alphacentric Symmetry Strategy is expected to under-perform the Ab Sustainable. But the mutual fund apears to be less risky and, when comparing its historical volatility, Alphacentric Symmetry Strategy is 1.66 times less risky than Ab Sustainable. The mutual fund trades about -0.01 of its potential returns per unit of risk. The Ab Sustainable Thematic is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  1,590  in Ab Sustainable Thematic on October 27, 2024 and sell it today you would earn a total of  35.00  from holding Ab Sustainable Thematic or generate 2.2% 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 Sustainable Thematic

Alphacentric Symmetry

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Alphacentric Symmetry Strategy are ranked lower than 4 (%) 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 Sustainable Thematic

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ab Sustainable Thematic has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's fundamental 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.

Pair Trading with Alphacentric Symmetry and Ab Sustainable

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

The idea behind Alphacentric Symmetry Strategy and Ab Sustainable Thematic 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.