Correlation Between Strategy Shares and ABOT
Can any of the company-specific risk be diversified away by investing in both Strategy Shares and ABOT 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 Strategy Shares and ABOT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Strategy Shares and ABOT, you can compare the effects of market volatilities on Strategy Shares and ABOT 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 Strategy Shares with a short position of ABOT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Strategy Shares and ABOT.
Diversification Opportunities for Strategy Shares and ABOT
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Strategy and ABOT is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Strategy Shares and ABOT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ABOT and Strategy Shares 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 Strategy Shares are associated (or correlated) with ABOT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ABOT has no effect on the direction of Strategy Shares i.e., Strategy Shares and ABOT go up and down completely randomly.
Pair Corralation between Strategy Shares and ABOT
Given the investment horizon of 90 days Strategy Shares is expected to generate 0.33 times more return on investment than ABOT. However, Strategy Shares is 3.06 times less risky than ABOT. It trades about 0.12 of its potential returns per unit of risk. ABOT is currently generating about -0.01 per unit of risk. If you would invest 2,575 in Strategy Shares on September 25, 2025 and sell it today you would earn a total of 56.00 from holding Strategy Shares or generate 2.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Strategy Shares vs. ABOT
Performance |
| Timeline |
| Strategy Shares |
| ABOT |
Strategy Shares and ABOT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Strategy Shares and ABOT
The main advantage of trading using opposite Strategy Shares and ABOT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Strategy Shares position performs unexpectedly, ABOT 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 ABOT will offset losses from the drop in ABOT's long position.| Strategy Shares vs. Bridges Capital Tactical | Strategy Shares vs. Pacer Swan SOS | Strategy Shares vs. Trueshares Structured Outcome | Strategy Shares vs. Manager Directed Portfolios |
| ABOT vs. Strategy Shares | ABOT vs. Freedom Day Dividend | ABOT vs. Davis Select International | ABOT vs. iShares MSCI China |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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