Correlation Between Aberdeen Asia-pacific and Voya Global
Can any of the company-specific risk be diversified away by investing in both Aberdeen Asia-pacific and Voya 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 Aberdeen Asia-pacific and Voya Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aberdeen Asia Pacific If and Voya Global Equity, you can compare the effects of market volatilities on Aberdeen Asia-pacific and Voya 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 Aberdeen Asia-pacific with a short position of Voya Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aberdeen Asia-pacific and Voya Global.
Diversification Opportunities for Aberdeen Asia-pacific and Voya Global
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aberdeen and Voya is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Aberdeen Asia Pacific If and Voya Global Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Global Equity and Aberdeen Asia-pacific 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 Aberdeen Asia Pacific If are associated (or correlated) with Voya Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Global Equity has no effect on the direction of Aberdeen Asia-pacific i.e., Aberdeen Asia-pacific and Voya Global go up and down completely randomly.
Pair Corralation between Aberdeen Asia-pacific and Voya Global
Considering the 90-day investment horizon Aberdeen Asia-pacific is expected to generate 2.69 times less return on investment than Voya Global. In addition to that, Aberdeen Asia-pacific is 1.2 times more volatile than Voya Global Equity. It trades about 0.04 of its total potential returns per unit of risk. Voya Global Equity is currently generating about 0.12 per unit of volatility. If you would invest 462.00 in Voya Global Equity on August 28, 2024 and sell it today you would earn a total of 100.00 from holding Voya Global Equity or generate 21.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.52% |
| Values | Daily Returns |
Aberdeen Asia Pacific If vs. Voya Global Equity
Performance |
| Timeline |
| Aberdeen Asia Pacific |
| Voya Global Equity |
Aberdeen Asia-pacific and Voya Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aberdeen Asia-pacific and Voya Global
The main advantage of trading using opposite Aberdeen Asia-pacific and Voya Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aberdeen Asia-pacific position performs unexpectedly, Voya 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 Voya Global will offset losses from the drop in Voya Global's long position.| Aberdeen Asia-pacific vs. Aberdeen Australia Ef | Aberdeen Asia-pacific vs. Aberdeen Japan Equity | Aberdeen Asia-pacific vs. Stone Harbor Emerging | Aberdeen Asia-pacific vs. Aberdeen Global IF |
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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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