Correlation Between Ab Global and Stone Ridge
Can any of the company-specific risk be diversified away by investing in both Ab Global and Stone Ridge 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 Global and Stone Ridge into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab Global Risk and Stone Ridge Diversified, you can compare the effects of market volatilities on Ab Global and Stone Ridge 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 Global with a short position of Stone Ridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Global and Stone Ridge.
Diversification Opportunities for Ab Global and Stone Ridge
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between CABIX and Stone is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Ab Global Risk and Stone Ridge Diversified in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stone Ridge Diversified and Ab Global 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 Global Risk are associated (or correlated) with Stone Ridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stone Ridge Diversified has no effect on the direction of Ab Global i.e., Ab Global and Stone Ridge go up and down completely randomly.
Pair Corralation between Ab Global and Stone Ridge
Assuming the 90 days horizon Ab Global Risk is expected to generate 1.52 times more return on investment than Stone Ridge. However, Ab Global is 1.52 times more volatile than Stone Ridge Diversified. It trades about 0.14 of its potential returns per unit of risk. Stone Ridge Diversified is currently generating about -0.02 per unit of risk. If you would invest 1,520 in Ab Global Risk on June 8, 2025 and sell it today you would earn a total of 141.00 from holding Ab Global Risk or generate 9.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.21% |
| Values | Daily Returns |
Ab Global Risk vs. Stone Ridge Diversified
Performance |
| Timeline |
| Ab Global Risk |
| Stone Ridge Diversified |
Ab Global and Stone Ridge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Global and Stone Ridge
The main advantage of trading using opposite Ab Global and Stone Ridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Global position performs unexpectedly, Stone Ridge 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 Stone Ridge will offset losses from the drop in Stone Ridge's long position.| Ab Global vs. Morningstar Global Income | Ab Global vs. Vanguard Global Equity | Ab Global vs. Gamco Global Opportunity | Ab Global vs. Ab Global Risk |
| Stone Ridge vs. Gabelli Gold Fund | Stone Ridge vs. Invesco Gold Special | Stone Ridge vs. Global Gold Fund | Stone Ridge vs. Precious Metals And |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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