Correlation Between Aberdeen New and CT Private
Can any of the company-specific risk be diversified away by investing in both Aberdeen New and CT Private 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 New and CT Private into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aberdeen New India and CT Private Equity, you can compare the effects of market volatilities on Aberdeen New and CT Private 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 New with a short position of CT Private. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aberdeen New and CT Private.
Diversification Opportunities for Aberdeen New and CT Private
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aberdeen and CTPE is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Aberdeen New India and CT Private Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CT Private Equity and Aberdeen New 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 New India are associated (or correlated) with CT Private. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CT Private Equity has no effect on the direction of Aberdeen New i.e., Aberdeen New and CT Private go up and down completely randomly.
Pair Corralation between Aberdeen New and CT Private
Assuming the 90 days trading horizon Aberdeen New India is expected to generate 0.66 times more return on investment than CT Private. However, Aberdeen New India is 1.5 times less risky than CT Private. It trades about 0.11 of its potential returns per unit of risk. CT Private Equity is currently generating about 0.01 per unit of risk. If you would invest 59,600 in Aberdeen New India on August 25, 2024 and sell it today you would earn a total of 19,600 from holding Aberdeen New India or generate 32.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aberdeen New India vs. CT Private Equity
Performance |
| Timeline |
| Aberdeen New India |
| CT Private Equity |
Aberdeen New and CT Private Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aberdeen New and CT Private
The main advantage of trading using opposite Aberdeen New and CT Private positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aberdeen New position performs unexpectedly, CT Private 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 CT Private will offset losses from the drop in CT Private's long position.| Aberdeen New vs. Scottish Mortgage Investment | Aberdeen New vs. Baillie Gifford Growth | Aberdeen New vs. CT Private Equity | Aberdeen New vs. Blackrock Energy and |
| CT Private vs. Scottish Mortgage Investment | CT Private vs. Baillie Gifford Growth | CT Private vs. Blackrock Energy and | CT Private vs. Downing Strategic Micro Cap |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |