Correlation Between Aberdeen and Aberdeen Global
Can any of the company-specific risk be diversified away by investing in both Aberdeen 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 Aberdeen and Aberdeen Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aberdeen Multi Cap Equity and Aberdeen Global Fixed, you can compare the effects of market volatilities on Aberdeen 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 Aberdeen with a short position of Aberdeen Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aberdeen and Aberdeen Global.
Diversification Opportunities for Aberdeen and Aberdeen Global
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aberdeen and Aberdeen is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Aberdeen Multi Cap Equity and Aberdeen Global Fixed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aberdeen Global Fixed and Aberdeen 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 Multi Cap Equity 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 Fixed has no effect on the direction of Aberdeen i.e., Aberdeen and Aberdeen Global go up and down completely randomly.
Pair Corralation between Aberdeen and Aberdeen Global
Assuming the 90 days horizon Aberdeen Multi Cap Equity is expected to generate 3.55 times more return on investment than Aberdeen Global. However, Aberdeen is 3.55 times more volatile than Aberdeen Global Fixed. It trades about 0.15 of its potential returns per unit of risk. Aberdeen Global Fixed is currently generating about 0.04 per unit of risk. If you would invest 1,371 in Aberdeen Multi Cap Equity on August 29, 2024 and sell it today you would earn a total of 43.00 from holding Aberdeen Multi Cap Equity or generate 3.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aberdeen Multi Cap Equity vs. Aberdeen Global Fixed
Performance |
| Timeline |
| Aberdeen Multi Cap |
| Aberdeen Global Fixed |
Aberdeen and Aberdeen Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aberdeen and Aberdeen Global
The main advantage of trading using opposite Aberdeen and Aberdeen Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aberdeen 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.| Aberdeen vs. Dunham High Yield | Aberdeen vs. Artisan High Income | Aberdeen vs. Msift High Yield | Aberdeen vs. Calvert High Yield |
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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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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