Correlation Between Abrdn Em and Aberdeen Global
Can any of the company-specific risk be diversified away by investing in both Abrdn Em and Aberdeen Global 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 Abrdn Em and Aberdeen Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Abrdn Em Sma and Aberdeen Global High, you can compare the effects of market volatilities on Abrdn Em and Aberdeen Global 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 Abrdn Em with a short position of Aberdeen Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Abrdn Em and Aberdeen Global.
Diversification Opportunities for Abrdn Em and Aberdeen Global
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Abrdn and Aberdeen is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Abrdn Em Sma and Aberdeen Global High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aberdeen Global High and Abrdn Em 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 Abrdn Em Sma are associated (or correlated) with Aberdeen Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aberdeen Global High has no effect on the direction of Abrdn Em i.e., Abrdn Em and Aberdeen Global go up and down completely randomly.
Pair Corralation between Abrdn Em and Aberdeen Global
Assuming the 90 days horizon Abrdn Em Sma is expected to under-perform the Aberdeen Global. In addition to that, Abrdn Em is 3.83 times more volatile than Aberdeen Global High. It trades about -0.01 of its total potential returns per unit of risk. Aberdeen Global High is currently generating about 0.27 per unit of volatility. If you would invest 691.00 in Aberdeen Global High on October 23, 2024 and sell it today you would earn a total of 6.00 from holding Aberdeen Global High or generate 0.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Abrdn Em Sma vs. Aberdeen Global High
Performance |
| Timeline |
| Abrdn Em Sma |
| Aberdeen Global High |
Abrdn Em and Aberdeen Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Abrdn Em and Aberdeen Global
The main advantage of trading using opposite Abrdn Em and Aberdeen Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Abrdn Em position performs unexpectedly, Aberdeen Global 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 Global will offset losses from the drop in Aberdeen Global's long position.The idea behind Abrdn Em Sma and Aberdeen Global High pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Aberdeen Global vs. Payden Government Fund | Aberdeen Global vs. Prudential Government Money | Aberdeen Global vs. Franklin Adjustable Government | Aberdeen Global vs. Intermediate Government Bond |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |