Correlation Between Ab Select and Auer Growth
Can any of the company-specific risk be diversified away by investing in both Ab Select and Auer Growth 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 Select and Auer Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab Select Equity and Auer Growth Fund, you can compare the effects of market volatilities on Ab Select and Auer Growth 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 Select with a short position of Auer Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Select and Auer Growth.
Diversification Opportunities for Ab Select and Auer Growth
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AUUIX and Auer is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Ab Select Equity and Auer Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Auer Growth Fund and Ab Select 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 Select Equity are associated (or correlated) with Auer Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Auer Growth Fund has no effect on the direction of Ab Select i.e., Ab Select and Auer Growth go up and down completely randomly.
Pair Corralation between Ab Select and Auer Growth
Assuming the 90 days horizon Ab Select is expected to generate 1.79 times less return on investment than Auer Growth. But when comparing it to its historical volatility, Ab Select Equity is 1.68 times less risky than Auer Growth. It trades about 0.12 of its potential returns per unit of risk. Auer Growth Fund is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,593 in Auer Growth Fund on September 8, 2025 and sell it today you would earn a total of 147.00 from holding Auer Growth Fund or generate 9.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab Select Equity vs. Auer Growth Fund
Performance |
| Timeline |
| Ab Select Equity |
| Auer Growth Fund |
Ab Select and Auer Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Select and Auer Growth
The main advantage of trading using opposite Ab Select and Auer Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Select position performs unexpectedly, Auer Growth 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 Auer Growth will offset losses from the drop in Auer Growth's long position.| Ab Select vs. Ab Global E | Ab Select vs. Ab Global E | Ab Select vs. Ab Global E | Ab Select vs. Ab All Market |
| Auer Growth vs. Mfs Lifetime 2040 | Auer Growth vs. Amg Gwk Small | Auer Growth vs. Great West Sp 500 | Auer Growth vs. Jpmorgan Smartretirement Income |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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