Two Equities Correlation Analysis
Specify exactly 2 symbols:
GCEYX
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This model provides you with a quick lookup of cross correlation between two equities. Please specify two instruments to run the correlation.
Diversification Opportunities for Ab Global and NYSE Composite
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between GCEYX and NYSE is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Ab Global E and NYSE Composite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NYSE Composite 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 NYSE Composite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NYSE Composite has no effect on the direction of Ab Global i.e., Ab Global and NYSE Composite go up and down completely randomly.
Pair Corralation between Ab Global and NYSE Composite
Assuming the 90 days horizon Ab Global E is expected to under-perform the NYSE Composite. But the mutual fund apears to be less risky and, when comparing its historical volatility, Ab Global E is 1.04 times less risky than NYSE Composite. The mutual fund trades about -0.16 of its potential returns per unit of risk. The NYSE Composite is currently generating about -0.1 of returns per unit of risk over similar time horizon. If you would invest 1,807,715 in NYSE Composite on January 25, 2024 and sell it today you would lose (28,439) from holding NYSE Composite or give up 1.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Ab Global E vs. NYSE Composite
Performance |
| Timeline |
Ab Global and NYSE Composite Volatility Contrast
Predicted Return Density |
| Returns |
Ab Global E
Pair trading matchups for Ab Global
NYSE Composite
Pair trading matchups for NYSE Composite
Pair Trading with Ab Global and NYSE Composite
The main advantage of trading using opposite Ab Global and NYSE Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Global position performs unexpectedly, NYSE Composite 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 NYSE Composite will offset losses from the drop in NYSE Composite's long position.| Ab Global vs. American Funds Capital | Ab Global vs. American Funds Capital | Ab Global vs. Capital World Growth | Ab Global vs. Capital World Growth |
| NYSE Composite vs. Aduro Clean Technologies | NYSE Composite vs. Transphorm Technology | NYSE Composite vs. Advanced Micro Devices | NYSE Composite vs. IPG Photonics |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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