Correlation Between Ab Global and Global Multi
Can any of the company-specific risk be diversified away by investing in both Ab Global and Global Multi 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 Global Multi 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 Global Multi Strategy Fund, you can compare the effects of market volatilities on Ab Global and Global Multi 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 Global Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Global and Global Multi.
Diversification Opportunities for Ab Global and Global Multi
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between CBSYX and Global is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Ab Global Risk and Global Multi Strategy Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Multi Strategy 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 Global Multi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Multi Strategy has no effect on the direction of Ab Global i.e., Ab Global and Global Multi go up and down completely randomly.
Pair Corralation between Ab Global and Global Multi
Assuming the 90 days horizon Ab Global Risk is expected to generate 1.76 times more return on investment than Global Multi. However, Ab Global is 1.76 times more volatile than Global Multi Strategy Fund. It trades about 0.3 of its potential returns per unit of risk. Global Multi Strategy Fund is currently generating about 0.43 per unit of risk. If you would invest 1,550 in Ab Global Risk on April 25, 2025 and sell it today you would earn a total of 93.00 from holding Ab Global Risk or generate 6.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab Global Risk vs. Global Multi Strategy Fund
Performance |
| Timeline |
| Ab Global Risk |
| Global Multi Strategy |
Ab Global and Global Multi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Global and Global Multi
The main advantage of trading using opposite Ab Global and Global Multi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Global position performs unexpectedly, Global Multi 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 Global Multi will offset losses from the drop in Global Multi's long position.| Ab Global vs. All Asset Fund | Ab Global vs. Pimco All Asset | Ab Global vs. All Asset Fund | Ab Global vs. Pimco All Asset |
| Global Multi vs. T Rowe Price | Global Multi vs. Tfa Tactical Income | Global Multi vs. Kirr Marbach Partners | Global Multi vs. Transamerica Emerging Markets |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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