Correlation Between Aberdeen Global and Aberdeen Standard
Can any of the company-specific risk be diversified away by investing in both Aberdeen Global and Aberdeen Standard 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 Aberdeen Standard into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aberdeen Global Premier and Aberdeen Standard Global, you can compare the effects of market volatilities on Aberdeen Global and Aberdeen Standard 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 Aberdeen Standard. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aberdeen Global and Aberdeen Standard.
Diversification Opportunities for Aberdeen Global and Aberdeen Standard
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Aberdeen and Aberdeen is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Aberdeen Global Premier and Aberdeen Standard Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aberdeen Standard Global 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 Premier are associated (or correlated) with Aberdeen Standard. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aberdeen Standard Global has no effect on the direction of Aberdeen Global i.e., Aberdeen Global and Aberdeen Standard go up and down completely randomly.
Pair Corralation between Aberdeen Global and Aberdeen Standard
Considering the 90-day investment horizon Aberdeen Global Premier is expected to generate 1.12 times more return on investment than Aberdeen Standard. However, Aberdeen Global is 1.12 times more volatile than Aberdeen Standard Global. It trades about 0.37 of its potential returns per unit of risk. Aberdeen Standard Global is currently generating about 0.23 per unit of risk. If you would invest 377.00 in Aberdeen Global Premier on November 9, 2024 and sell it today you would earn a total of 29.00 from holding Aberdeen Global Premier or generate 7.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aberdeen Global Premier vs. Aberdeen Standard Global
Performance |
| Timeline |
| Aberdeen Global Premier |
| Aberdeen Standard Global |
Aberdeen Global and Aberdeen Standard Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aberdeen Global and Aberdeen Standard
The main advantage of trading using opposite Aberdeen Global and Aberdeen Standard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aberdeen Global position performs unexpectedly, Aberdeen Standard 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 Standard will offset losses from the drop in Aberdeen Standard's long position.| Aberdeen Global vs. Aberdeen Total Dynamic | Aberdeen Global vs. Alliancebernstein National Municipal | Aberdeen Global vs. Aberdeen Standard Global | Aberdeen Global vs. BlackRock Energy and |
| Aberdeen Standard vs. Blackrock Muniyield Quality | Aberdeen Standard vs. PIMCO Access Income | Aberdeen Standard vs. Nuveen Municipal Credit | Aberdeen Standard vs. Western Asset Diversified |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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