Correlation Between Aberdeen Global and CBH
Can any of the company-specific risk be diversified away by investing in both Aberdeen Global and CBH 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 CBH 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 CBH, you can compare the effects of market volatilities on Aberdeen Global and CBH 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 CBH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aberdeen Global and CBH.
Diversification Opportunities for Aberdeen Global and CBH
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aberdeen and CBH is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Aberdeen Global Dynamic and CBH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CBH 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 CBH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CBH has no effect on the direction of Aberdeen Global i.e., Aberdeen Global and CBH go up and down completely randomly.
Pair Corralation between Aberdeen Global and CBH
If you would invest 919.00 in CBH on August 29, 2024 and sell it today you would earn a total of 0.00 from holding CBH or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Aberdeen Global Dynamic vs. CBH
Performance |
| Timeline |
| Aberdeen Global Dynamic |
| CBH |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Aberdeen Global and CBH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aberdeen Global and CBH
The main advantage of trading using opposite Aberdeen Global and CBH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aberdeen Global position performs unexpectedly, CBH 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 CBH will offset losses from the drop in CBH's long position.| Aberdeen Global vs. Allianzgi Convertible Income | Aberdeen Global vs. MFS Investment Grade | Aberdeen Global vs. Eaton Vance Senior | Aberdeen Global vs. Stone Harbor Emerging |
| CBH vs. Eaton Vance National | CBH vs. Invesco High Income | CBH vs. Blackrock Muniholdings Ny | CBH vs. Nuveen California Select |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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