Correlation Between Gmo Global and Ab International
Can any of the company-specific risk be diversified away by investing in both Gmo Global 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 Gmo Global and Ab International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gmo Global Equity and Ab International Growth, you can compare the effects of market volatilities on Gmo Global 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 Gmo Global with a short position of Ab International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gmo Global and Ab International.
Diversification Opportunities for Gmo Global and Ab International
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Gmo and AWPIX is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Gmo Global Equity 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 Gmo 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 Gmo Global Equity 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 Gmo Global i.e., Gmo Global and Ab International go up and down completely randomly.
Pair Corralation between Gmo Global and Ab International
Assuming the 90 days horizon Gmo Global Equity is expected to generate 1.01 times more return on investment than Ab International. However, Gmo Global is 1.01 times more volatile than Ab International Growth. It trades about 0.29 of its potential returns per unit of risk. Ab International Growth is currently generating about 0.22 per unit of risk. If you would invest 2,899 in Gmo Global Equity on April 29, 2025 and sell it today you would earn a total of 347.00 from holding Gmo Global Equity or generate 11.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gmo Global Equity vs. Ab International Growth
Performance |
| Timeline |
| Gmo Global Equity |
| Ab International Growth |
Gmo Global and Ab International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gmo Global and Ab International
The main advantage of trading using opposite Gmo Global and Ab International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gmo Global 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.| Gmo Global vs. Allianzgi Convertible Income | Gmo Global vs. Putnam Convertible Securities | Gmo Global vs. Advent Claymore Convertible | Gmo Global vs. Calamos Dynamic Convertible |
| Ab International vs. The Hartford Inflation | Ab International vs. Atac Inflation Rotation | Ab International vs. Ab Bond Inflation | Ab International vs. The Hartford Inflation |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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