Correlation Between Abrdn Bloomberg and VanEck CMCI
Can any of the company-specific risk be diversified away by investing in both Abrdn Bloomberg and VanEck CMCI 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 Bloomberg and VanEck CMCI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between abrdn Bloomberg All and VanEck CMCI Commodity, you can compare the effects of market volatilities on Abrdn Bloomberg and VanEck CMCI 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 Bloomberg with a short position of VanEck CMCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Abrdn Bloomberg and VanEck CMCI.
Diversification Opportunities for Abrdn Bloomberg and VanEck CMCI
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Abrdn and VanEck is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding abrdn Bloomberg All and VanEck CMCI Commodity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VanEck CMCI Commodity and Abrdn Bloomberg 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 Bloomberg All are associated (or correlated) with VanEck CMCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VanEck CMCI Commodity has no effect on the direction of Abrdn Bloomberg i.e., Abrdn Bloomberg and VanEck CMCI go up and down completely randomly.
Pair Corralation between Abrdn Bloomberg and VanEck CMCI
Considering the 90-day investment horizon abrdn Bloomberg All is expected to generate 0.9 times more return on investment than VanEck CMCI. However, abrdn Bloomberg All is 1.11 times less risky than VanEck CMCI. It trades about 0.03 of its potential returns per unit of risk. VanEck CMCI Commodity is currently generating about 0.02 per unit of risk. If you would invest 3,044 in abrdn Bloomberg All on November 30, 2024 and sell it today you would earn a total of 240.00 from holding abrdn Bloomberg All or generate 7.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 77.13% |
| Values | Daily Returns |
abrdn Bloomberg All vs. VanEck CMCI Commodity
Performance |
| Timeline |
| abrdn Bloomberg All |
| VanEck CMCI Commodity |
Abrdn Bloomberg and VanEck CMCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Abrdn Bloomberg and VanEck CMCI
The main advantage of trading using opposite Abrdn Bloomberg and VanEck CMCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Abrdn Bloomberg position performs unexpectedly, VanEck CMCI 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 VanEck CMCI will offset losses from the drop in VanEck CMCI's long position.| Abrdn Bloomberg vs. abrdn Bloomberg All | Abrdn Bloomberg vs. iShares Bloomberg Roll | Abrdn Bloomberg vs. GraniteShares Bloomberg Commodity | Abrdn Bloomberg vs. iShares GSCI Commodity |
| VanEck CMCI vs. Strategy Shares | VanEck CMCI vs. Freedom Day Dividend | VanEck CMCI vs. Franklin Templeton ETF | VanEck CMCI vs. iShares MSCI China |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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