Correlation Between Aberdeen China and Aberdeen China
Can any of the company-specific risk be diversified away by investing in both Aberdeen China and Aberdeen China 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 China and Aberdeen China into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aberdeen China Oppty and Aberdeen China Oppty, you can compare the effects of market volatilities on Aberdeen China and Aberdeen China 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 China with a short position of Aberdeen China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aberdeen China and Aberdeen China.
Diversification Opportunities for Aberdeen China and Aberdeen China
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Aberdeen and Aberdeen is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Aberdeen China Oppty and Aberdeen China Oppty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aberdeen China Oppty and Aberdeen China 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 China Oppty are associated (or correlated) with Aberdeen China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aberdeen China Oppty has no effect on the direction of Aberdeen China i.e., Aberdeen China and Aberdeen China go up and down completely randomly.
Pair Corralation between Aberdeen China and Aberdeen China
Assuming the 90 days horizon Aberdeen China Oppty is expected to generate 1.0 times more return on investment than Aberdeen China. However, Aberdeen China Oppty is 1.0 times less risky than Aberdeen China. It trades about -0.01 of its potential returns per unit of risk. Aberdeen China Oppty is currently generating about -0.01 per unit of risk. If you would invest 2,332 in Aberdeen China Oppty on August 29, 2024 and sell it today you would lose (142.00) from holding Aberdeen China Oppty or give up 6.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aberdeen China Oppty vs. Aberdeen China Oppty
Performance |
| Timeline |
| Aberdeen China Oppty |
| Aberdeen China Oppty |
Aberdeen China and Aberdeen China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aberdeen China and Aberdeen China
The main advantage of trading using opposite Aberdeen China and Aberdeen China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aberdeen China position performs unexpectedly, Aberdeen China 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 China will offset losses from the drop in Aberdeen China's long position.| Aberdeen China vs. Morgan Stanley Global | Aberdeen China vs. Wisdomtree Siegel Global | Aberdeen China vs. Power Global Tactical | Aberdeen China vs. Barings Global Floating |
| Aberdeen China vs. Pro Blend Moderate Term | Aberdeen China vs. Hartford Moderate Allocation | Aberdeen China vs. Blackrock Moderate Prepared | Aberdeen China vs. Target Retirement 2040 |
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 Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |