Correlation Between Ab Bond and Aberdeen China
Can any of the company-specific risk be diversified away by investing in both Ab Bond and Aberdeen China 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 Bond and Aberdeen China into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab Bond Inflation and Aberdeen China Oppty, you can compare the effects of market volatilities on Ab Bond and Aberdeen China 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 Bond with a short position of Aberdeen China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Bond and Aberdeen China.
Diversification Opportunities for Ab Bond and Aberdeen China
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ABNYX and Aberdeen is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Ab Bond Inflation and Aberdeen China Oppty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aberdeen China Oppty and Ab Bond 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 Bond Inflation are associated (or correlated) with Aberdeen China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aberdeen China Oppty has no effect on the direction of Ab Bond i.e., Ab Bond and Aberdeen China go up and down completely randomly.
Pair Corralation between Ab Bond and Aberdeen China
Assuming the 90 days horizon Ab Bond is expected to generate 3.0 times less return on investment than Aberdeen China. But when comparing it to its historical volatility, Ab Bond Inflation is 7.09 times less risky than Aberdeen China. It trades about 0.08 of its potential returns per unit of risk. Aberdeen China Oppty is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 2,038 in Aberdeen China Oppty on September 14, 2024 and sell it today you would earn a total of 223.00 from holding Aberdeen China Oppty or generate 10.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Ab Bond Inflation vs. Aberdeen China Oppty
Performance |
| Timeline |
| Ab Bond Inflation |
| Aberdeen China Oppty |
Ab Bond and Aberdeen China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Bond and Aberdeen China
The main advantage of trading using opposite Ab Bond and Aberdeen China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Bond position performs unexpectedly, Aberdeen China 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 Aberdeen China will offset losses from the drop in Aberdeen China's long position.| Ab Bond vs. L Abbett Fundamental | Ab Bond vs. Rbb Fund | Ab Bond vs. Auer Growth Fund | Ab Bond vs. Ab Small Cap |
| Aberdeen China vs. Aberdeen Emerging Markets | Aberdeen China vs. Aberdeen Emerging Markets | Aberdeen China vs. Aberdeen Emerging Markets | Aberdeen China vs. Aberdeen Gbl Eq |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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