Correlation Between Blue Current and Aberdeen Gbl
Can any of the company-specific risk be diversified away by investing in both Blue Current and Aberdeen Gbl 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 Blue Current and Aberdeen Gbl into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blue Current Global and Aberdeen Gbl Small, you can compare the effects of market volatilities on Blue Current and Aberdeen Gbl 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 Blue Current with a short position of Aberdeen Gbl. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blue Current and Aberdeen Gbl.
Diversification Opportunities for Blue Current and Aberdeen Gbl
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Blue and Aberdeen is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Blue Current Global and Aberdeen Gbl Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aberdeen Gbl Small and Blue Current 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 Blue Current Global are associated (or correlated) with Aberdeen Gbl. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aberdeen Gbl Small has no effect on the direction of Blue Current i.e., Blue Current and Aberdeen Gbl go up and down completely randomly.
Pair Corralation between Blue Current and Aberdeen Gbl
Assuming the 90 days horizon Blue Current Global is expected to generate 0.7 times more return on investment than Aberdeen Gbl. However, Blue Current Global is 1.42 times less risky than Aberdeen Gbl. It trades about 0.07 of its potential returns per unit of risk. Aberdeen Gbl Small is currently generating about 0.03 per unit of risk. If you would invest 1,540 in Blue Current Global on September 1, 2024 and sell it today you would earn a total of 89.00 from holding Blue Current Global or generate 5.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Blue Current Global vs. Aberdeen Gbl Small
Performance |
| Timeline |
| Blue Current Global |
| Aberdeen Gbl Small |
Blue Current and Aberdeen Gbl Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blue Current and Aberdeen Gbl
The main advantage of trading using opposite Blue Current and Aberdeen Gbl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blue Current position performs unexpectedly, Aberdeen Gbl 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 Gbl will offset losses from the drop in Aberdeen Gbl's long position.| Blue Current vs. Investec Emerging Markets | Blue Current vs. Origin Emerging Markets | Blue Current vs. Eagle Mlp Strategy | Blue Current vs. Pace International Emerging |
| Aberdeen Gbl vs. Aberdeen Emerging Markets | Aberdeen Gbl vs. Aberdeen Emerging Markets | Aberdeen Gbl vs. Aberdeen Emerging Markets | Aberdeen Gbl vs. Aberdeen Gbl Eq |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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