Correlation Between Ab Global and Nasdaq 100
Can any of the company-specific risk be diversified away by investing in both Ab Global and Nasdaq 100 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 Nasdaq 100 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 Nasdaq 100 Index Fund, you can compare the effects of market volatilities on Ab Global and Nasdaq 100 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 Nasdaq 100. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Global and Nasdaq 100.
Diversification Opportunities for Ab Global and Nasdaq 100
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between CBSYX and Nasdaq is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Ab Global Risk and Nasdaq 100 Index Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nasdaq 100 Index 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 Nasdaq 100. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nasdaq 100 Index has no effect on the direction of Ab Global i.e., Ab Global and Nasdaq 100 go up and down completely randomly.
Pair Corralation between Ab Global and Nasdaq 100
Assuming the 90 days horizon Ab Global Risk is expected to under-perform the Nasdaq 100. But the mutual fund apears to be less risky and, when comparing its historical volatility, Ab Global Risk is 2.79 times less risky than Nasdaq 100. The mutual fund trades about -0.02 of its potential returns per unit of risk. The Nasdaq 100 Index Fund is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 2,503 in Nasdaq 100 Index Fund on May 24, 2025 and sell it today you would lose (1.00) from holding Nasdaq 100 Index Fund or give up 0.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab Global Risk vs. Nasdaq 100 Index Fund
Performance |
| Timeline |
| Ab Global Risk |
| Nasdaq 100 Index |
Ab Global and Nasdaq 100 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Global and Nasdaq 100
The main advantage of trading using opposite Ab Global and Nasdaq 100 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Global position performs unexpectedly, Nasdaq 100 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 Nasdaq 100 will offset losses from the drop in Nasdaq 100's long position.| Ab Global vs. Europac Gold Fund | Ab Global vs. Investment Managers Series | Ab Global vs. Precious Metals And | Ab Global vs. Great West Goldman Sachs |
| Nasdaq 100 vs. Rmb Mendon Financial | Nasdaq 100 vs. Goldman Sachs Trust | Nasdaq 100 vs. Gabelli Global Financial | Nasdaq 100 vs. Mesirow Financial Small |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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