Correlation Between Aberdeen Global and Armada Hflr
Can any of the company-specific risk be diversified away by investing in both Aberdeen Global and Armada Hflr 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 Global and Armada Hflr into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aberdeen Global Dynamic and Armada Hflr Pr, you can compare the effects of market volatilities on Aberdeen Global and Armada Hflr 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 Global with a short position of Armada Hflr. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aberdeen Global and Armada Hflr.
Diversification Opportunities for Aberdeen Global and Armada Hflr
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Aberdeen and Armada is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Aberdeen Global Dynamic and Armada Hflr Pr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Armada Hflr Pr and Aberdeen Global 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 Global Dynamic are associated (or correlated) with Armada Hflr. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Armada Hflr Pr has no effect on the direction of Aberdeen Global i.e., Aberdeen Global and Armada Hflr go up and down completely randomly.
Pair Corralation between Aberdeen Global and Armada Hflr
Considering the 90-day investment horizon Aberdeen Global is expected to generate 1.05 times less return on investment than Armada Hflr. But when comparing it to its historical volatility, Aberdeen Global Dynamic is 1.67 times less risky than Armada Hflr. It trades about 0.16 of its potential returns per unit of risk. Armada Hflr Pr is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,083 in Armada Hflr Pr on September 1, 2024 and sell it today you would earn a total of 22.00 from holding Armada Hflr Pr or generate 2.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Aberdeen Global Dynamic vs. Armada Hflr Pr
Performance |
| Timeline |
| Aberdeen Global Dynamic |
| Armada Hflr Pr |
Aberdeen Global and Armada Hflr Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aberdeen Global and Armada Hflr
The main advantage of trading using opposite Aberdeen Global and Armada Hflr positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aberdeen Global position performs unexpectedly, Armada Hflr 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 Armada Hflr will offset losses from the drop in Armada Hflr's long position.| Aberdeen Global vs. Blackrock Resources Commodities | Aberdeen Global vs. Aberdeen Total Dynamic | Aberdeen Global vs. Blackrock Enhanced Equity | Aberdeen Global vs. Cbre Clarion Global |
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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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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