Correlation Analysis Between Ab Cap and American Funds

Analyzing existing cross correlation between Ab Cap Fund Inc - Ab Global Core Equity Portfo and American Funds Capital World. You can compare the effects of market volatilities on Ab Cap and American Funds 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 Cap with a short position of American Funds. See also your portfolio center. Please also check ongoing floating volatility patterns of Ab Cap and American Funds.
Horizon     30 Days    Login   to change
Symbolsvs
Check Efficiency

Comparative Performance

Ab Cap Fund  
55

Risk-Adjusted Fund Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Ab Cap Fund Inc - Ab Global Core Equity Portfo are ranked lower than 5 (%) of all funds and portfolios of funds over the last 30 days. Inspite fairly strong basic indicators, Ab Cap is not utilizing all of its potentials. The current stock price disturbance, may contribute to short term losses for the investors.
American Funds Capital  
1111

Risk-Adjusted Fund Performance

Compared to the overall equity markets, risk-adjusted returns on investments in American Funds Capital World are ranked lower than 11 (%) of all funds and portfolios of funds over the last 30 days. Inspite fairly strong basic indicators, American Funds is not utilizing all of its potentials. The current stock price disturbance, may contribute to short term losses for the investors.

Ab Cap and American Funds Volatility Contrast

 Predicted Return Density 
    
  Returns 

Ab Cap Fund Inc - Ab Global Co  vs.  American Funds Capital World

 Performance (%) 
    
  Timeline 

Pair Volatility

Assuming 30 trading days horizon, Ab Cap is expected to generate 1.77 times less return on investment than American Funds. In addition to that, Ab Cap is 1.24 times more volatile than American Funds Capital World. It trades about 0.07 of its total potential returns per unit of risk. American Funds Capital World is currently generating about 0.16 per unit of volatility. If you would invest  4,955  in American Funds Capital World on December 28, 2019 and sell it today you would earn a total of  302.00  from holding American Funds Capital World or generate 6.09% return on investment over 30 days.

Pair Corralation between Ab Cap and American Funds

0.89
Time Period3 Months [change]
DirectionPositive 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Ab Cap and American Funds

Ab Cap Fund Inc - Ab Global Co diversification synergy

Very poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding Ab Cap Fund Inc - Ab Global Co and American Funds Capital World in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on American Funds Capital and Ab Cap 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 Cap Fund Inc - Ab Global Core Equity Portfo are associated (or correlated) with American Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Funds Capital has no effect on the direction of Ab Cap i.e. Ab Cap and American Funds go up and down completely randomly.
See also your portfolio center. Please also try Price Ceiling Movement module to calculate and plot price ceiling movement for different equity instruments.