Correlation Between Alpine Global and Aberdeen China
Can any of the company-specific risk be diversified away by investing in both Alpine Global and Aberdeen China 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 Alpine Global and Aberdeen China into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alpine Global Infrastructure and Aberdeen China Oppty, you can compare the effects of market volatilities on Alpine Global and Aberdeen China 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 Alpine Global with a short position of Aberdeen China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alpine Global and Aberdeen China.
Diversification Opportunities for Alpine Global and Aberdeen China
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Alpine and Aberdeen is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Alpine Global Infrastructure and Aberdeen China Oppty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aberdeen China Oppty and Alpine 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 Alpine Global Infrastructure are associated (or correlated) with Aberdeen China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aberdeen China Oppty has no effect on the direction of Alpine Global i.e., Alpine Global and Aberdeen China go up and down completely randomly.
Pair Corralation between Alpine Global and Aberdeen China
Assuming the 90 days horizon Alpine Global Infrastructure is expected to generate 0.56 times more return on investment than Aberdeen China. However, Alpine Global Infrastructure is 1.8 times less risky than Aberdeen China. It trades about 0.07 of its potential returns per unit of risk. Aberdeen China Oppty is currently generating about -0.01 per unit of risk. If you would invest 2,077 in Alpine Global Infrastructure on August 30, 2024 and sell it today you would earn a total of 365.00 from holding Alpine Global Infrastructure or generate 17.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alpine Global Infrastructure vs. Aberdeen China Oppty
Performance |
| Timeline |
| Alpine Global Infras |
| Aberdeen China Oppty |
Alpine Global and Aberdeen China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alpine Global and Aberdeen China
The main advantage of trading using opposite Alpine Global and Aberdeen China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alpine Global position performs unexpectedly, Aberdeen China 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 Aberdeen China will offset losses from the drop in Aberdeen China's long position.| Alpine Global vs. Alpine Global Infrastructure | Alpine Global vs. Frontier Mfg E | Alpine Global vs. Invesco Disciplined Equity | Alpine Global vs. Select Fund C |
| Aberdeen China vs. Pro Blend Moderate Term | Aberdeen China vs. Hartford Moderate Allocation | Aberdeen China vs. Blackrock Moderate Prepared | Aberdeen China vs. Target Retirement 2040 |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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