Correlation Between Aberdeen Emerging and Aberdeen Select
Can any of the company-specific risk be diversified away by investing in both Aberdeen Emerging and Aberdeen Select 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 Emerging and Aberdeen Select into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aberdeen Emerging Markets and Aberdeen Select International, you can compare the effects of market volatilities on Aberdeen Emerging and Aberdeen Select 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 Emerging with a short position of Aberdeen Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aberdeen Emerging and Aberdeen Select.
Diversification Opportunities for Aberdeen Emerging and Aberdeen Select
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Aberdeen and Aberdeen is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Aberdeen Emerging Markets and Aberdeen Select International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aberdeen Select Inte and Aberdeen Emerging 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 Emerging Markets are associated (or correlated) with Aberdeen Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aberdeen Select Inte has no effect on the direction of Aberdeen Emerging i.e., Aberdeen Emerging and Aberdeen Select go up and down completely randomly.
Pair Corralation between Aberdeen Emerging and Aberdeen Select
Assuming the 90 days horizon Aberdeen Emerging is expected to generate 1.44 times less return on investment than Aberdeen Select. But when comparing it to its historical volatility, Aberdeen Emerging Markets is 1.06 times less risky than Aberdeen Select. It trades about 0.05 of its potential returns per unit of risk. Aberdeen Select International is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 2,580 in Aberdeen Select International on September 4, 2024 and sell it today you would earn a total of 405.00 from holding Aberdeen Select International or generate 15.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aberdeen Emerging Markets vs. Aberdeen Select International
Performance |
| Timeline |
| Aberdeen Emerging Markets |
| Aberdeen Select Inte |
Aberdeen Emerging and Aberdeen Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aberdeen Emerging and Aberdeen Select
The main advantage of trading using opposite Aberdeen Emerging and Aberdeen Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aberdeen Emerging position performs unexpectedly, Aberdeen Select 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 Select will offset losses from the drop in Aberdeen Select's long position.| Aberdeen Emerging vs. Bbh Intermediate Municipal | Aberdeen Emerging vs. Artisan High Income | Aberdeen Emerging vs. Versatile Bond Portfolio | Aberdeen Emerging vs. Multisector Bond Sma |
| Aberdeen Select vs. Aberdeen Emerging Markets | Aberdeen Select vs. Aberdeen Emerging Markets | Aberdeen Select vs. Aberdeen Emerging Markets | Aberdeen Select 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |