Correlation Between Pender Real and Ab Discovery
Can any of the company-specific risk be diversified away by investing in both Pender Real and Ab Discovery 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 Pender Real and Ab Discovery into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pender Real Estate and Ab Discovery Growth, you can compare the effects of market volatilities on Pender Real and Ab Discovery 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 Pender Real with a short position of Ab Discovery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pender Real and Ab Discovery.
Diversification Opportunities for Pender Real and Ab Discovery
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Pender and CHCIX is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Pender Real Estate and Ab Discovery Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Discovery Growth and Pender Real 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 Pender Real Estate are associated (or correlated) with Ab Discovery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Discovery Growth has no effect on the direction of Pender Real i.e., Pender Real and Ab Discovery go up and down completely randomly.
Pair Corralation between Pender Real and Ab Discovery
Assuming the 90 days horizon Pender Real is expected to generate 4.0 times less return on investment than Ab Discovery. But when comparing it to its historical volatility, Pender Real Estate is 24.17 times less risky than Ab Discovery. It trades about 0.53 of its potential returns per unit of risk. Ab Discovery Growth is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,313 in Ab Discovery Growth on June 6, 2025 and sell it today you would earn a total of 25.00 from holding Ab Discovery Growth or generate 1.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pender Real Estate vs. Ab Discovery Growth
Performance |
| Timeline |
| Pender Real Estate |
| Ab Discovery Growth |
Pender Real and Ab Discovery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pender Real and Ab Discovery
The main advantage of trading using opposite Pender Real and Ab Discovery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pender Real position performs unexpectedly, Ab Discovery 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 Discovery will offset losses from the drop in Ab Discovery's long position.| Pender Real vs. Barings Active Short | Pender Real vs. Nuveen Short Term | Pender Real vs. Vanguard Short Term Government | Pender Real vs. John Hancock Municipal |
| Ab Discovery vs. Ab Global E | Ab Discovery vs. Ab Global E | Ab Discovery vs. Ab Global E | Ab Discovery 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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