Correlation Between CBH and Aberdeen Global
Can any of the company-specific risk be diversified away by investing in both CBH 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 CBH and Aberdeen Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CBH and Aberdeen Global Dynamic, you can compare the effects of market volatilities on CBH 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 CBH with a short position of Aberdeen Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of CBH and Aberdeen Global.
Diversification Opportunities for CBH and Aberdeen Global
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CBH and Aberdeen is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding CBH and Aberdeen Global Dynamic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aberdeen Global Dynamic and CBH 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 CBH 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 Dynamic has no effect on the direction of CBH i.e., CBH and Aberdeen Global go up and down completely randomly.
Pair Corralation between CBH and Aberdeen Global
If you would invest 919.00 in CBH on August 29, 2024 and sell it today you would earn a total of 0.00 from holding CBH or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
CBH vs. Aberdeen Global Dynamic
Performance |
| Timeline |
| CBH |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Aberdeen Global Dynamic |
CBH and Aberdeen Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CBH and Aberdeen Global
The main advantage of trading using opposite CBH and Aberdeen Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CBH 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.| CBH vs. Eaton Vance National | CBH vs. Invesco High Income | CBH vs. Blackrock Muniholdings Ny | CBH vs. Nuveen California Select |
| Aberdeen Global vs. Allianzgi Convertible Income | Aberdeen Global vs. MFS Investment Grade | Aberdeen Global vs. Eaton Vance Senior | Aberdeen Global vs. Stone Harbor Emerging |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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