Correlation Between Ab Value and Horizon Funds
Can any of the company-specific risk be diversified away by investing in both Ab Value and Horizon Funds 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 Value and Horizon Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab Value Fund and Horizon Funds , you can compare the effects of market volatilities on Ab Value and Horizon Funds 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 Value with a short position of Horizon Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Value and Horizon Funds.
Diversification Opportunities for Ab Value and Horizon Funds
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between ABVCX and Horizon is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Ab Value Fund and Horizon Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Horizon Funds and Ab Value 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 Value Fund are associated (or correlated) with Horizon Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Horizon Funds has no effect on the direction of Ab Value i.e., Ab Value and Horizon Funds go up and down completely randomly.
Pair Corralation between Ab Value and Horizon Funds
Assuming the 90 days horizon Ab Value Fund is expected to generate 3.92 times more return on investment than Horizon Funds. However, Ab Value is 3.92 times more volatile than Horizon Funds . It trades about 0.26 of its potential returns per unit of risk. Horizon Funds is currently generating about 0.23 per unit of risk. If you would invest 1,645 in Ab Value Fund on April 26, 2025 and sell it today you would earn a total of 188.00 from holding Ab Value Fund or generate 11.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab Value Fund vs. Horizon Funds
Performance |
| Timeline |
| Ab Value Fund |
| Horizon Funds |
Ab Value and Horizon Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Value and Horizon Funds
The main advantage of trading using opposite Ab Value and Horizon Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Value position performs unexpectedly, Horizon Funds 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 Horizon Funds will offset losses from the drop in Horizon Funds' long position.| Ab Value vs. Absolute Convertible Arbitrage | Ab Value vs. Allianzgi Convertible Income | Ab Value vs. Columbia Convertible Securities | Ab Value vs. Gabelli Convertible And |
| Horizon Funds vs. Harbor Diversified International | Horizon Funds vs. Vy T Rowe | Horizon Funds vs. Lord Abbett Diversified | Horizon Funds vs. Harbor Diversified International |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |