Correlation Between Dana Large and Ab International
Can any of the company-specific risk be diversified away by investing in both Dana Large and Ab International 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 Dana Large and Ab International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dana Large Cap and Ab International Growth, you can compare the effects of market volatilities on Dana Large and Ab International 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 Dana Large with a short position of Ab International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dana Large and Ab International.
Diversification Opportunities for Dana Large and Ab International
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Dana and AWPIX is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Dana Large Cap and Ab International Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab International Growth and Dana Large 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 Dana Large Cap are associated (or correlated) with Ab International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab International Growth has no effect on the direction of Dana Large i.e., Dana Large and Ab International go up and down completely randomly.
Pair Corralation between Dana Large and Ab International
Assuming the 90 days horizon Dana Large Cap is expected to generate 0.91 times more return on investment than Ab International. However, Dana Large Cap is 1.1 times less risky than Ab International. It trades about 0.41 of its potential returns per unit of risk. Ab International Growth is currently generating about 0.14 per unit of risk. If you would invest 2,190 in Dana Large Cap on April 6, 2025 and sell it today you would earn a total of 127.00 from holding Dana Large Cap or generate 5.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dana Large Cap vs. Ab International Growth
Performance |
| Timeline |
| Dana Large Cap |
| Ab International Growth |
Dana Large and Ab International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dana Large and Ab International
The main advantage of trading using opposite Dana Large and Ab International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dana Large position performs unexpectedly, Ab International 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 Ab International will offset losses from the drop in Ab International's long position.| Dana Large vs. Lord Abbett Diversified | Dana Large vs. Vy T Rowe | Dana Large vs. Ab Servative Wealth | Dana Large vs. Mutual Of America |
| Ab International vs. American Funds Retirement | Ab International vs. Retirement Living Through | Ab International vs. College Retirement Equities | Ab International vs. Putnman Retirement Ready |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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