Correlation Between Aberdeen New and GraniteShares
Can any of the company-specific risk be diversified away by investing in both Aberdeen New and GraniteShares 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 GraniteShares 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 GraniteShares 3x Short, you can compare the effects of market volatilities on Aberdeen New and GraniteShares 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 GraniteShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aberdeen New and GraniteShares.
Diversification Opportunities for Aberdeen New and GraniteShares
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aberdeen and GraniteShares is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Aberdeen New India and GraniteShares 3x Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GraniteShares 3x Short 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 GraniteShares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GraniteShares 3x Short has no effect on the direction of Aberdeen New i.e., Aberdeen New and GraniteShares go up and down completely randomly.
Pair Corralation between Aberdeen New and GraniteShares
Assuming the 90 days trading horizon Aberdeen New India is expected to generate 0.19 times more return on investment than GraniteShares. However, Aberdeen New India is 5.4 times less risky than GraniteShares. It trades about 0.34 of its potential returns per unit of risk. GraniteShares 3x Short is currently generating about -0.12 per unit of risk. If you would invest 74,800 in Aberdeen New India on August 28, 2024 and sell it today you would earn a total of 6,000 from holding Aberdeen New India or generate 8.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aberdeen New India vs. GraniteShares 3x Short
Performance |
| Timeline |
| Aberdeen New India |
| GraniteShares 3x Short |
Aberdeen New and GraniteShares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aberdeen New and GraniteShares
The main advantage of trading using opposite Aberdeen New and GraniteShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aberdeen New position performs unexpectedly, GraniteShares 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 GraniteShares will offset losses from the drop in GraniteShares' long position.| Aberdeen New vs. Scottish Mortgage Investment | Aberdeen New vs. Baillie Gifford Growth | Aberdeen New vs. Downing Strategic Micro Cap |
| GraniteShares vs. Scottish Mortgage Investment | GraniteShares vs. CT Private Equity | GraniteShares vs. Aberdeen New India | GraniteShares vs. Invesco Health Care |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |