Correlation Between Ab Bond and Access Capital

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

By analyzing existing cross correlation between Ab Bond Inflation and Access Capital Munity, you can compare the effects of market volatilities on Ab Bond and Access Capital 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 Bond with a short position of Access Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Bond and Access Capital.

Diversification Opportunities for Ab Bond and Access Capital

0.9

Correlation Coefficient

Ab Bond  Access Capital

Almost no diversification

The 3 months correlation between ABNTX and Access is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Ab Bond Inflation and Access Capital Munity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Access Capital Munity and Ab Bond 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 Bond Inflation are associated (or correlated) with Access Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Access Capital Munity has no effect on the direction of Ab Bond i.e., Ab Bond and Access Capital go up and down completely randomly.

Pair Corralation between Ab Bond and Access Capital

Assuming the 90 days horizon Ab Bond Inflation is expected to generate 0.55 times more return on investment than Access Capital. However, Ab Bond Inflation is 1.81 times less risky than Access Capital. It trades about -0.06 of its potential returns per unit of risk. Access Capital Munity is currently generating about -0.1 per unit of risk. If you would invest  1,022  in Ab Bond Inflation on September 12, 2024 and sell it today you would lose (8.00) from holding Ab Bond Inflation or give up 0.78% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	98.44%
Values	Daily Returns

Ab Bond Inflation  vs.  Access Capital Munity

Ab Bond Inflation

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ab Bond Inflation has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Ab Bond is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Access Capital Munity

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Access Capital Munity has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Access Capital is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Ab Bond and Access Capital

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

The idea behind Ab Bond Inflation and Access Capital Munity 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.