Correlation Between Ab Global and Apple
Can any of the company-specific risk be diversified away by investing in both Ab Global and Apple 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 Ab Global and Apple into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab Global E and Apple Inc, you can compare the effects of market volatilities on Ab Global and Apple 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 Global with a short position of Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Global and Apple.
Diversification Opportunities for Ab Global and Apple
Pay attention - limited upside
The 3 months correlation between GCECX and Apple is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Ab Global E and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc 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 Apple. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apple Inc has no effect on the direction of Ab Global i.e., Ab Global and Apple go up and down completely randomly.
Pair Corralation between Ab Global and Apple
Assuming the 90 days horizon Ab Global E is expected to generate 0.53 times more return on investment than Apple. However, Ab Global E is 1.88 times less risky than Apple. It trades about 0.03 of its potential returns per unit of risk. Apple Inc is currently generating about -0.06 per unit of risk. If you would invest 1,510 in Ab Global E on January 24, 2024 and sell it today you would earn a total of 51.00 from holding Ab Global E or generate 3.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab Global E vs. Apple Inc
Performance |
| Timeline |
| Ab Global E |
| Apple Inc |
Ab Global and Apple Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Global and Apple
The main advantage of trading using opposite Ab Global and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Global position performs unexpectedly, Apple 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 Apple will offset losses from the drop in Apple's long position.| Ab Global vs. Ab Minnesota Portfolio | Ab Global vs. Ab Global Bond | Ab Global vs. Ab Global Bond | Ab Global vs. Ab Global Bond |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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