Correlation Between James Balanced and Ab Select
Can any of the company-specific risk be diversified away by investing in both James Balanced and Ab Select 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 James Balanced and Ab Select into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between James Balanced Golden and Ab Select Longshort, you can compare the effects of market volatilities on James Balanced and Ab Select 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 James Balanced with a short position of Ab Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of James Balanced and Ab Select.
Diversification Opportunities for James Balanced and Ab Select
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between James and ASLAX is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding James Balanced Golden and Ab Select Longshort in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Select Longshort and James Balanced 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 James Balanced Golden are associated (or correlated) with Ab Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Select Longshort has no effect on the direction of James Balanced i.e., James Balanced and Ab Select go up and down completely randomly.
Pair Corralation between James Balanced and Ab Select
Assuming the 90 days horizon James Balanced Golden is expected to generate 1.0 times more return on investment than Ab Select. However, James Balanced is 1.0 times more volatile than Ab Select Longshort. It trades about 0.2 of its potential returns per unit of risk. Ab Select Longshort is currently generating about 0.12 per unit of risk. If you would invest 2,368 in James Balanced Golden on September 2, 2025 and sell it today you would earn a total of 119.00 from holding James Balanced Golden or generate 5.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
James Balanced Golden vs. Ab Select Longshort
Performance |
| Timeline |
| James Balanced Golden |
| Ab Select Longshort |
James Balanced and Ab Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with James Balanced and Ab Select
The main advantage of trading using opposite James Balanced and Ab Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if James Balanced position performs unexpectedly, Ab Select 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 Select will offset losses from the drop in Ab Select's long position.| James Balanced vs. Semiconductor Ultrasector Profund | James Balanced vs. T Rowe Price | James Balanced vs. Vanguard High Yield Tax Exempt | James Balanced vs. Doubleline Emerging Markets |
| Ab Select vs. Blackrock Resources Commodities | Ab Select vs. World Energy Fund | Ab Select vs. Ivy Natural Resources | Ab Select vs. Thrivent Natural Resources |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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