Correlation Between Bbh Intermediate and Aberdeen China
Can any of the company-specific risk be diversified away by investing in both Bbh Intermediate 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 Bbh Intermediate and Aberdeen China into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bbh Intermediate Municipal and Aberdeen China Oppty, you can compare the effects of market volatilities on Bbh Intermediate 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 Bbh Intermediate with a short position of Aberdeen China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bbh Intermediate and Aberdeen China.
Diversification Opportunities for Bbh Intermediate and Aberdeen China
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bbh and Aberdeen is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Bbh Intermediate Municipal 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 Bbh Intermediate 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 Bbh Intermediate Municipal 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 Bbh Intermediate i.e., Bbh Intermediate and Aberdeen China go up and down completely randomly.
Pair Corralation between Bbh Intermediate and Aberdeen China
Assuming the 90 days horizon Bbh Intermediate Municipal is expected to generate 0.14 times more return on investment than Aberdeen China. However, Bbh Intermediate Municipal is 6.94 times less risky than Aberdeen China. It trades about 0.03 of its potential returns per unit of risk. Aberdeen China Oppty is currently generating about -0.06 per unit of risk. If you would invest 1,020 in Bbh Intermediate Municipal on October 26, 2024 and sell it today you would earn a total of 4.00 from holding Bbh Intermediate Municipal or generate 0.39% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Bbh Intermediate Municipal vs. Aberdeen China Oppty
Performance |
Timeline |
Bbh Intermediate Mun |
Aberdeen China Oppty |
Bbh Intermediate and Aberdeen China Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bbh Intermediate and Aberdeen China
The main advantage of trading using opposite Bbh Intermediate and Aberdeen China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bbh Intermediate 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.Bbh Intermediate vs. Issachar Fund Class | Bbh Intermediate vs. Barings Active Short | Bbh Intermediate vs. Small Midcap Dividend Income | Bbh Intermediate vs. Rational Dividend Capture |
Aberdeen China vs. Ultrasmall Cap Profund Ultrasmall Cap | Aberdeen China vs. Ultramid Cap Profund Ultramid Cap | Aberdeen China vs. Fidelity Small Cap | Aberdeen China vs. Lord Abbett Small |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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