Correlation Between Aberdeen Diversified and Markel Corp
Can any of the company-specific risk be diversified away by investing in both Aberdeen Diversified and Markel Corp 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 Aberdeen Diversified and Markel Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aberdeen Diversified Income and Markel Corp, you can compare the effects of market volatilities on Aberdeen Diversified and Markel Corp 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 Aberdeen Diversified with a short position of Markel Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aberdeen Diversified and Markel Corp.
Diversification Opportunities for Aberdeen Diversified and Markel Corp
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aberdeen and Markel is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Aberdeen Diversified Income and Markel Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Markel Corp and Aberdeen Diversified 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 Aberdeen Diversified Income are associated (or correlated) with Markel Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Markel Corp has no effect on the direction of Aberdeen Diversified i.e., Aberdeen Diversified and Markel Corp go up and down completely randomly.
Pair Corralation between Aberdeen Diversified and Markel Corp
Assuming the 90 days trading horizon Aberdeen Diversified is expected to generate 3.58 times less return on investment than Markel Corp. In addition to that, Aberdeen Diversified is 1.91 times more volatile than Markel Corp. It trades about 0.07 of its total potential returns per unit of risk. Markel Corp is currently generating about 0.45 per unit of volatility. If you would invest 155,034 in Markel Corp on September 1, 2024 and sell it today you would earn a total of 23,612 from holding Markel Corp or generate 15.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Aberdeen Diversified Income vs. Markel Corp
Performance |
| Timeline |
| Aberdeen Diversified |
| Markel Corp |
Aberdeen Diversified and Markel Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aberdeen Diversified and Markel Corp
The main advantage of trading using opposite Aberdeen Diversified and Markel Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aberdeen Diversified position performs unexpectedly, Markel Corp 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 Markel Corp will offset losses from the drop in Markel Corp's long position.| Aberdeen Diversified vs. Gamma Communications PLC | Aberdeen Diversified vs. Team Internet Group | Aberdeen Diversified vs. Dentsply Sirona | Aberdeen Diversified vs. United Internet AG |
| Markel Corp vs. Zoom Video Communications | Markel Corp vs. Bankers Investment Trust | Markel Corp vs. Aberdeen Diversified Income | Markel Corp vs. Batm Advanced Communications |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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