Correlation Between Gmo Resources and Ab International

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

By analyzing existing cross correlation between Gmo Resources and Ab International Growth, you can compare the effects of market volatilities on Gmo Resources and Ab International 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 Gmo Resources with a short position of Ab International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gmo Resources and Ab International.

Diversification Opportunities for Gmo Resources and Ab International

0.84

Correlation Coefficient

Gmo Resources  Ab International

Very poor diversification

The 3 months correlation between Gmo and AWPYX is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Gmo Resources and Ab International Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab International Growth and Gmo Resources 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 Gmo Resources are associated (or correlated) with Ab International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab International Growth has no effect on the direction of Gmo Resources i.e., Gmo Resources and Ab International go up and down completely randomly.

Pair Corralation between Gmo Resources and Ab International

Assuming the 90 days horizon Gmo Resources is expected to generate 2.39 times more return on investment than Ab International. However, Gmo Resources is 2.39 times more volatile than Ab International Growth. It trades about 0.22 of its potential returns per unit of risk. Ab International Growth is currently generating about 0.14 per unit of risk. If you would invest  1,597  in Gmo Resources on May 2, 2025 and sell it today you would earn a total of  334.00  from holding Gmo Resources or generate 20.91% return on investment over 90 days.

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

Gmo Resources  vs.  Ab International Growth

Gmo Resources

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Gmo Resources are ranked lower than 17 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Gmo Resources showed solid returns over the last few months and may actually be approaching a breakup point.

Ab International Growth

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Ab International Growth are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Ab International is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Gmo Resources and Ab International

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

The idea behind Gmo Resources and Ab International Growth 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.