Correlation Between Aberdeen Global and Cornerstone Strategic
Can any of the company-specific risk be diversified away by investing in both Aberdeen Global and Cornerstone Strategic 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 Cornerstone Strategic 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 Cornerstone Strategic Value, you can compare the effects of market volatilities on Aberdeen Global and Cornerstone Strategic 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 Cornerstone Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aberdeen Global and Cornerstone Strategic.
Diversification Opportunities for Aberdeen Global and Cornerstone Strategic
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Aberdeen and Cornerstone is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Aberdeen Global Dynamic and Cornerstone Strategic Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cornerstone Strategic 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 Cornerstone Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cornerstone Strategic has no effect on the direction of Aberdeen Global i.e., Aberdeen Global and Cornerstone Strategic go up and down completely randomly.
Pair Corralation between Aberdeen Global and Cornerstone Strategic
Considering the 90-day investment horizon Aberdeen Global Dynamic is expected to under-perform the Cornerstone Strategic. But the fund apears to be less risky and, when comparing its historical volatility, Aberdeen Global Dynamic is 3.07 times less risky than Cornerstone Strategic. The fund trades about -0.09 of its potential returns per unit of risk. The Cornerstone Strategic Value is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 796.00 in Cornerstone Strategic Value on September 13, 2024 and sell it today you would earn a total of 57.00 from holding Cornerstone Strategic Value or generate 7.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aberdeen Global Dynamic vs. Cornerstone Strategic Value
Performance |
| Timeline |
| Aberdeen Global Dynamic |
| Cornerstone Strategic |
Aberdeen Global and Cornerstone Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aberdeen Global and Cornerstone Strategic
The main advantage of trading using opposite Aberdeen Global and Cornerstone Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aberdeen Global position performs unexpectedly, Cornerstone Strategic 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 Cornerstone Strategic will offset losses from the drop in Cornerstone Strategic'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 |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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