Correlation Between Abrdn Short and Siit High
Can any of the company-specific risk be diversified away by investing in both Abrdn Short and Siit High 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 Abrdn Short and Siit High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Abrdn Short Duration and Siit High Yield, you can compare the effects of market volatilities on Abrdn Short and Siit High 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 Abrdn Short with a short position of Siit High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Abrdn Short and Siit High.
Diversification Opportunities for Abrdn Short and Siit High
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Abrdn and Siit is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Abrdn Short Duration and Siit High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siit High Yield and Abrdn Short 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 Abrdn Short Duration are associated (or correlated) with Siit High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siit High Yield has no effect on the direction of Abrdn Short i.e., Abrdn Short and Siit High go up and down completely randomly.
Pair Corralation between Abrdn Short and Siit High
Assuming the 90 days horizon Abrdn Short Duration is expected to generate 1.04 times more return on investment than Siit High. However, Abrdn Short is 1.04 times more volatile than Siit High Yield. It trades about 0.2 of its potential returns per unit of risk. Siit High Yield is currently generating about 0.13 per unit of risk. If you would invest 919.00 in Abrdn Short Duration on August 29, 2024 and sell it today you would earn a total of 8.00 from holding Abrdn Short Duration or generate 0.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Abrdn Short Duration vs. Siit High Yield
Performance |
| Timeline |
| Abrdn Short Duration |
| Siit High Yield |
Abrdn Short and Siit High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Abrdn Short and Siit High
The main advantage of trading using opposite Abrdn Short and Siit High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Abrdn Short position performs unexpectedly, Siit High 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 Siit High will offset losses from the drop in Siit High's long position.| Abrdn Short vs. Siit High Yield | Abrdn Short vs. Morningstar Aggressive Growth | Abrdn Short vs. Western Asset High | Abrdn Short vs. Needham Aggressive Growth |
| Siit High vs. Prudential High Yield | Siit High vs. HUMANA INC | Siit High vs. Aquagold International | Siit High vs. Barloworld Ltd ADR |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |