Correlation Between FF Global and Aberdeen Global
Can any of the company-specific risk be diversified away by investing in both FF Global 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 FF Global and Aberdeen Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FF Global and Aberdeen Global Asian, you can compare the effects of market volatilities on FF Global 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 FF Global with a short position of Aberdeen Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of FF Global and Aberdeen Global.
Diversification Opportunities for FF Global and Aberdeen Global
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FJ2P and Aberdeen is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding FF Global and Aberdeen Global Asian in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aberdeen Global Asian and FF Global 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 FF Global 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 Asian has no effect on the direction of FF Global i.e., FF Global and Aberdeen Global go up and down completely randomly.
Pair Corralation between FF Global and Aberdeen Global
Assuming the 90 days trading horizon FF Global is expected to generate 1.14 times more return on investment than Aberdeen Global. However, FF Global is 1.14 times more volatile than Aberdeen Global Asian. It trades about 0.04 of its potential returns per unit of risk. Aberdeen Global Asian is currently generating about -0.29 per unit of risk. If you would invest 7,447 in FF Global on December 4, 2024 and sell it today you would earn a total of 53.00 from holding FF Global or generate 0.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
FF Global vs. Aberdeen Global Asian
Performance |
| Timeline |
| FF Global |
| Aberdeen Global Asian |
FF Global and Aberdeen Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FF Global and Aberdeen Global
The main advantage of trading using opposite FF Global and Aberdeen Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FF Global 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.| FF Global vs. Esfera Robotics R | FF Global vs. R co Valor F | FF Global vs. CM AM Monplus NE | FF Global vs. IE00B0H4TS55 |
| Aberdeen Global vs. Esfera Robotics R | Aberdeen Global vs. R co Valor F | Aberdeen Global vs. CM AM Monplus NE | Aberdeen Global vs. IE00B0H4TS55 |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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