Correlation Between Affiliated Managers and Abacus Life,

Can any of the company-specific risk be diversified away by investing in both Affiliated Managers and Abacus Life, 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 Affiliated Managers and Abacus Life, into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Affiliated Managers Group and Abacus Life, 9875, you can compare the effects of market volatilities on Affiliated Managers and Abacus Life, 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 Affiliated Managers with a short position of Abacus Life,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Affiliated Managers and Abacus Life,.

Diversification Opportunities for Affiliated Managers and Abacus Life,

-0.75

Correlation Coefficient

Affiliated Managers  Abacus Life,

Pay attention - limited upside

The 3 months correlation between Affiliated and Abacus is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Affiliated Managers Group and Abacus Life, 9875 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Abacus Life, 9875 and Affiliated Managers 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 Affiliated Managers Group are associated (or correlated) with Abacus Life,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Abacus Life, 9875 has no effect on the direction of Affiliated Managers i.e., Affiliated Managers and Abacus Life, go up and down completely randomly.

Pair Corralation between Affiliated Managers and Abacus Life,

Considering the 90-day investment horizon Affiliated Managers Group is expected to under-perform the Abacus Life,. But the stock apears to be less risky and, when comparing its historical volatility, Affiliated Managers Group is 2.2 times less risky than Abacus Life,. The stock trades about -0.29 of its potential returns per unit of risk. The Abacus Life, 9875 is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  2,618  in Abacus Life, 9875 on September 27, 2024 and sell it today you would earn a total of  105.00  from holding Abacus Life, 9875 or generate 4.01% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Affiliated Managers Group  vs.  Abacus Life, 9875

Affiliated Managers

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Affiliated Managers Group has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest weak performance, the Stock's technical and fundamental indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Abacus Life, 9875

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Abacus Life, 9875 are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent essential indicators, Abacus Life, is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Affiliated Managers and Abacus Life,

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

The idea behind Affiliated Managers Group and Abacus Life, 9875 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.