Correlation Between Ab Sustainable and Mutual Of

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

By analyzing existing cross correlation between Ab Sustainable Thematic and Mutual Of America, you can compare the effects of market volatilities on Ab Sustainable and Mutual Of 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 Sustainable with a short position of Mutual Of. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Sustainable and Mutual Of.

Diversification Opportunities for Ab Sustainable and Mutual Of

0.58

Correlation Coefficient

Ab Sustainable  Mutual Of

Very weak diversification

The 3 months correlation between SUTAX and Mutual is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Ab Sustainable Thematic and Mutual Of America in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mutual Of America and Ab Sustainable 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 Sustainable Thematic are associated (or correlated) with Mutual Of. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mutual Of America has no effect on the direction of Ab Sustainable i.e., Ab Sustainable and Mutual Of go up and down completely randomly.

Pair Corralation between Ab Sustainable and Mutual Of

Assuming the 90 days horizon Ab Sustainable Thematic is expected to generate 1.89 times more return on investment than Mutual Of. However, Ab Sustainable is 1.89 times more volatile than Mutual Of America. It trades about 0.27 of its potential returns per unit of risk. Mutual Of America is currently generating about 0.23 per unit of risk. If you would invest  1,459  in Ab Sustainable Thematic on May 2, 2025 and sell it today you would earn a total of  203.00  from holding Ab Sustainable Thematic or generate 13.91% return on investment over 90 days.

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

Ab Sustainable Thematic  vs.  Mutual Of America

Ab Sustainable Thematic

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Ab Sustainable Thematic are ranked lower than 21 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Ab Sustainable showed solid returns over the last few months and may actually be approaching a breakup point.

Mutual Of America

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Mutual Of America are ranked lower than 18 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Mutual Of may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Ab Sustainable and Mutual Of

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

The idea behind Ab Sustainable Thematic and Mutual Of America 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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.