Correlation Between Ab Bond and Congress Large
Can any of the company-specific risk be diversified away by investing in both Ab Bond and Congress Large 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 Congress Large 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 Congress Large Cap, you can compare the effects of market volatilities on Ab Bond and Congress Large 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 Congress Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Bond and Congress Large.
Diversification Opportunities for Ab Bond and Congress Large
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between ABNCX and Congress is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Ab Bond Inflation and Congress Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Congress Large Cap 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 Congress Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Congress Large Cap has no effect on the direction of Ab Bond i.e., Ab Bond and Congress Large go up and down completely randomly.
Pair Corralation between Ab Bond and Congress Large
Assuming the 90 days horizon Ab Bond is expected to generate 3.7 times less return on investment than Congress Large. But when comparing it to its historical volatility, Ab Bond Inflation is 4.54 times less risky than Congress Large. It trades about 0.31 of its potential returns per unit of risk. Congress Large Cap is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 4,708 in Congress Large Cap on June 13, 2025 and sell it today you would earn a total of 516.00 from holding Congress Large Cap or generate 10.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab Bond Inflation vs. Congress Large Cap
Performance |
| Timeline |
| Ab Bond Inflation |
| Congress Large Cap |
Ab Bond and Congress Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Bond and Congress Large
The main advantage of trading using opposite Ab Bond and Congress Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Bond position performs unexpectedly, Congress Large 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 Congress Large will offset losses from the drop in Congress Large's long position.| Ab Bond vs. Dreyfusstandish Global Fixed | Ab Bond vs. Ms Global Fixed | Ab Bond vs. Asg Global Alternatives | Ab Bond vs. Templeton Global Balanced |
| Congress Large vs. Ultra Short Fixed Income | Congress Large vs. Franklin Federal Limited Term | Congress Large vs. Barings Active Short | Congress Large vs. Western Asset Short |
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 Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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