Correlation Between Able View and Paramount Global

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Can any of the company-specific risk be diversified away by investing in both Able View and Paramount 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 Able View and Paramount Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Able View Global and Paramount Global Class, you can compare the effects of market volatilities on Able View and Paramount 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 Able View with a short position of Paramount Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Able View and Paramount Global.

Diversification Opportunities for Able View and Paramount Global

-0.72
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Able and Paramount is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Able View Global and Paramount Global Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Paramount Global Class and Able View 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 Able View Global are associated (or correlated) with Paramount Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Paramount Global Class has no effect on the direction of Able View i.e., Able View and Paramount Global go up and down completely randomly.

Pair Corralation between Able View and Paramount Global

Given the investment horizon of 90 days Able View Global is expected to under-perform the Paramount Global. In addition to that, Able View is 3.47 times more volatile than Paramount Global Class. It trades about -0.06 of its total potential returns per unit of risk. Paramount Global Class is currently generating about 0.18 per unit of volatility. If you would invest  1,120  in Paramount Global Class on May 5, 2025 and sell it today you would earn a total of  181.00  from holding Paramount Global Class or generate 16.16% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Able View Global  vs.  Paramount Global Class

 Performance 
       Timeline  
Able View Global 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Able View Global has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's essential indicators remain fairly stable which may send shares a bit higher in September 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.
Paramount Global Class 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Paramount Global Class are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unsteady basic indicators, Paramount Global sustained solid returns over the last few months and may actually be approaching a breakup point.

Able View and Paramount Global Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Able View and Paramount Global

The main advantage of trading using opposite Able View and Paramount Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Able View position performs unexpectedly, Paramount 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 Paramount Global will offset losses from the drop in Paramount Global's long position.
The idea behind Able View Global and Paramount Global Class pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.

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