Correlation Between Champlain Mid and Aberdeen China
Can any of the company-specific risk be diversified away by investing in both Champlain Mid 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 Champlain Mid and Aberdeen China into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Champlain Mid Cap and Aberdeen China Oppty, you can compare the effects of market volatilities on Champlain Mid 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 Champlain Mid with a short position of Aberdeen China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Champlain Mid and Aberdeen China.
Diversification Opportunities for Champlain Mid and Aberdeen China
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Champlain and Aberdeen is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Champlain Mid Cap 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 Champlain Mid 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 Champlain Mid Cap 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 Champlain Mid i.e., Champlain Mid and Aberdeen China go up and down completely randomly.
Pair Corralation between Champlain Mid and Aberdeen China
Assuming the 90 days horizon Champlain Mid Cap is expected to generate 0.49 times more return on investment than Aberdeen China. However, Champlain Mid Cap is 2.05 times less risky than Aberdeen China. It trades about 0.11 of its potential returns per unit of risk. Aberdeen China Oppty is currently generating about 0.04 per unit of risk. If you would invest 2,319 in Champlain Mid Cap on September 1, 2024 and sell it today you would earn a total of 294.00 from holding Champlain Mid Cap or generate 12.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Champlain Mid Cap vs. Aberdeen China Oppty
Performance |
| Timeline |
| Champlain Mid Cap |
| Aberdeen China Oppty |
Champlain Mid and Aberdeen China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Champlain Mid and Aberdeen China
The main advantage of trading using opposite Champlain Mid and Aberdeen China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Champlain Mid 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.| Champlain Mid vs. Champlain Small Pany | Champlain Mid vs. T Rowe Price | Champlain Mid vs. American Mutual Fund | Champlain Mid vs. Loomis Sayles Growth |
| Aberdeen China vs. Virtus Convertible | Aberdeen China vs. Harbor Vertible Securities | Aberdeen China vs. Advent Claymore Convertible | Aberdeen China vs. The Gamco Global |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |