Correlation Between Needham Small and Ab Global
Can any of the company-specific risk be diversified away by investing in both Needham Small and Ab Global 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 Needham Small and Ab Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Needham Small Cap and Ab Global Risk, you can compare the effects of market volatilities on Needham Small and Ab Global 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 Needham Small with a short position of Ab Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Needham Small and Ab Global.
Diversification Opportunities for Needham Small and Ab Global
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Needham and CBSYX is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Needham Small Cap and Ab Global Risk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Global Risk and Needham Small 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 Needham Small Cap are associated (or correlated) with Ab Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Global Risk has no effect on the direction of Needham Small i.e., Needham Small and Ab Global go up and down completely randomly.
Pair Corralation between Needham Small and Ab Global
Assuming the 90 days horizon Needham Small Cap is expected to generate 5.44 times more return on investment than Ab Global. However, Needham Small is 5.44 times more volatile than Ab Global Risk. It trades about 0.37 of its potential returns per unit of risk. Ab Global Risk is currently generating about 0.41 per unit of risk. If you would invest 1,605 in Needham Small Cap on April 3, 2025 and sell it today you would earn a total of 198.00 from holding Needham Small Cap or generate 12.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Needham Small Cap vs. Ab Global Risk
Performance |
| Timeline |
| Needham Small Cap |
| Ab Global Risk |
Needham Small and Ab Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Needham Small and Ab Global
The main advantage of trading using opposite Needham Small and Ab Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Needham Small position performs unexpectedly, Ab Global 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 Global will offset losses from the drop in Ab Global's long position.| Needham Small vs. Federated High Yield | Needham Small vs. Siit High Yield | Needham Small vs. Gmo High Yield | Needham Small vs. Transamerica High Yield |
| Ab Global vs. Ab Global E | Ab Global vs. Ab Global E | Ab Global vs. Ab Global E | Ab Global vs. Ab All Market |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| CEOs Directory Screen CEOs from public companies around the world |