Correlation Between Gmo Emerging and Ab International
Can any of the company-specific risk be diversified away by investing in both Gmo Emerging 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 Emerging 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 Emerging Markets and Ab International Growth, you can compare the effects of market volatilities on Gmo Emerging 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 Emerging with a short position of Ab International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gmo Emerging and Ab International.
Diversification Opportunities for Gmo Emerging and Ab International
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Gmo and AWPIX is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Gmo Emerging Markets 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 Emerging 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 Emerging Markets 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 Emerging i.e., Gmo Emerging and Ab International go up and down completely randomly.
Pair Corralation between Gmo Emerging and Ab International
Assuming the 90 days horizon Gmo Emerging Markets is expected to generate 1.11 times more return on investment than Ab International. However, Gmo Emerging is 1.11 times more volatile than Ab International Growth. It trades about 0.12 of its potential returns per unit of risk. Ab International Growth is currently generating about 0.04 per unit of risk. If you would invest 1,258 in Gmo Emerging Markets on June 2, 2025 and sell it today you would earn a total of 75.00 from holding Gmo Emerging Markets or generate 5.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gmo Emerging Markets vs. Ab International Growth
Performance |
| Timeline |
| Gmo Emerging Markets |
| Ab International Growth |
Gmo Emerging and Ab International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gmo Emerging and Ab International
The main advantage of trading using opposite Gmo Emerging and Ab International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gmo Emerging 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 Emerging vs. Lord Abbett Intermediate | Gmo Emerging vs. Ishares Municipal Bond | Gmo Emerging vs. Gurtin California Muni | Gmo Emerging vs. Bbh Intermediate Municipal |
| Ab International vs. Siit Emerging Markets | Ab International vs. Harding Loevner Emerging | Ab International vs. Rbc Bluebay Emerging | Ab International vs. Ep Emerging Markets |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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