Correlation Between Aberdeen Emerging and Aberdeen Gbl
Can any of the company-specific risk be diversified away by investing in both Aberdeen Emerging and Aberdeen Gbl 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 Gbl 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 Gbl Small, you can compare the effects of market volatilities on Aberdeen Emerging and Aberdeen Gbl 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 Gbl. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aberdeen Emerging and Aberdeen Gbl.
Diversification Opportunities for Aberdeen Emerging and Aberdeen Gbl
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Aberdeen and Aberdeen is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Aberdeen Emerging Markets and Aberdeen Gbl Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aberdeen Gbl Small 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 Gbl. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aberdeen Gbl Small has no effect on the direction of Aberdeen Emerging i.e., Aberdeen Emerging and Aberdeen Gbl go up and down completely randomly.
Pair Corralation between Aberdeen Emerging and Aberdeen Gbl
Assuming the 90 days horizon Aberdeen Emerging Markets is expected to under-perform the Aberdeen Gbl. In addition to that, Aberdeen Emerging is 1.27 times more volatile than Aberdeen Gbl Small. It trades about -0.19 of its total potential returns per unit of risk. Aberdeen Gbl Small is currently generating about -0.06 per unit of volatility. If you would invest 3,033 in Aberdeen Gbl Small on August 26, 2024 and sell it today you would lose (29.00) from holding Aberdeen Gbl Small or give up 0.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aberdeen Emerging Markets vs. Aberdeen Gbl Small
Performance |
| Timeline |
| Aberdeen Emerging Markets |
| Aberdeen Gbl Small |
Aberdeen Emerging and Aberdeen Gbl Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aberdeen Emerging and Aberdeen Gbl
The main advantage of trading using opposite Aberdeen Emerging and Aberdeen Gbl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aberdeen Emerging position performs unexpectedly, Aberdeen Gbl 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 Gbl will offset losses from the drop in Aberdeen Gbl's long position.| Aberdeen Emerging vs. Davis Financial Fund | Aberdeen Emerging vs. 1919 Financial Services | Aberdeen Emerging vs. John Hancock Financial | Aberdeen Emerging vs. Prudential Jennison Financial |
| Aberdeen Gbl vs. Aberdeen Emerging Markets | Aberdeen Gbl vs. Aberdeen Emerging Markets | Aberdeen Gbl vs. Aberdeen Emerging Markets | Aberdeen Gbl 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |