Correlation Between Muzinich and Ab Small
Can any of the company-specific risk be diversified away by investing in both Muzinich and Ab Small 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 Muzinich and Ab Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Muzinich High Yield and Ab Small Cap, you can compare the effects of market volatilities on Muzinich and Ab Small 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 Muzinich with a short position of Ab Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Muzinich and Ab Small.
Diversification Opportunities for Muzinich and Ab Small
Very weak diversification
The 3 months correlation between Muzinich and QUAIX is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Muzinich High Yield and Ab Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Small Cap and Muzinich 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 Muzinich High Yield are associated (or correlated) with Ab Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Small Cap has no effect on the direction of Muzinich i.e., Muzinich and Ab Small go up and down completely randomly.
Pair Corralation between Muzinich and Ab Small
Assuming the 90 days horizon Muzinich is expected to generate 4.18 times less return on investment than Ab Small. But when comparing it to its historical volatility, Muzinich High Yield is 10.49 times less risky than Ab Small. It trades about 0.14 of its potential returns per unit of risk. Ab Small Cap is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 7,536 in Ab Small Cap on September 7, 2025 and sell it today you would earn a total of 349.00 from holding Ab Small Cap or generate 4.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Muzinich High Yield vs. Ab Small Cap
Performance |
| Timeline |
| Muzinich High Yield |
| Ab Small Cap |
Muzinich and Ab Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Muzinich and Ab Small
The main advantage of trading using opposite Muzinich and Ab Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Muzinich position performs unexpectedly, Ab Small 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 Small will offset losses from the drop in Ab Small's long position.| Muzinich vs. Muzinich Credit Opportunities | Muzinich vs. Muzinich Credit Opportunities | Muzinich vs. Muzinich High Yield | Muzinich vs. Muzinich Low Duration |
| Ab Small vs. Ab Municipal Bond | Ab Small vs. Abbey Capital Futures | Ab Small vs. Simt Multi Asset Inflation | Ab Small vs. Fidelity Sai Inflationfocused |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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