Correlation Between Ab All and Arrow Managed

Can any of the company-specific risk be diversified away by investing in both Ab All and Arrow Managed 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 Ab All and Arrow Managed into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Ab All Market and Arrow Managed Futures, you can compare the effects of market volatilities on Ab All and Arrow Managed 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 Ab All with a short position of Arrow Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab All and Arrow Managed.

Diversification Opportunities for Ab All and Arrow Managed

0.88

Correlation Coefficient

Ab All  Arrow Managed

Very poor diversification

The 3 months correlation between AMTOX and Arrow is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Ab All Market and Arrow Managed Futures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arrow Managed Futures and Ab All 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 Ab All Market are associated (or correlated) with Arrow Managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arrow Managed Futures has no effect on the direction of Ab All i.e., Ab All and Arrow Managed go up and down completely randomly.

Pair Corralation between Ab All and Arrow Managed

Assuming the 90 days horizon Ab All is expected to generate 1.83 times less return on investment than Arrow Managed. But when comparing it to its historical volatility, Ab All Market is 2.21 times less risky than Arrow Managed. It trades about 0.16 of its potential returns per unit of risk. Arrow Managed Futures is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  462.00  in Arrow Managed Futures on September 1, 2025 and sell it today you would earn a total of  56.00  from holding Arrow Managed Futures or generate 12.12% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

Ab All Market  vs.  Arrow Managed Futures

Ab All Market

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Ab All Market are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Ab All may actually be approaching a critical reversion point that can send shares even higher in December 2025.

Arrow Managed Futures

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Arrow Managed Futures are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Arrow Managed may actually be approaching a critical reversion point that can send shares even higher in December 2025.

Pair Trading with Ab All and Arrow Managed

The main advantage of trading using opposite Ab All and Arrow Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab All position performs unexpectedly, Arrow Managed 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 Arrow Managed will offset losses from the drop in Arrow Managed's long position.

The idea behind Ab All Market and Arrow Managed Futures 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.

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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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.