Correlation Between Aberdeen China and Frontier Mfg
Can any of the company-specific risk be diversified away by investing in both Aberdeen China and Frontier Mfg 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 Frontier Mfg 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 Frontier Mfg Global, you can compare the effects of market volatilities on Aberdeen China and Frontier Mfg 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 Frontier Mfg. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aberdeen China and Frontier Mfg.
Diversification Opportunities for Aberdeen China and Frontier Mfg
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aberdeen and Frontier is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aberdeen China Oppty and Frontier Mfg Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Frontier Mfg Global 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 Frontier Mfg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Frontier Mfg Global has no effect on the direction of Aberdeen China i.e., Aberdeen China and Frontier Mfg go up and down completely randomly.
Pair Corralation between Aberdeen China and Frontier Mfg
If you would invest 1,037 in Frontier Mfg Global on September 3, 2024 and sell it today you would earn a total of 522.00 from holding Frontier Mfg Global or generate 50.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Aberdeen China Oppty vs. Frontier Mfg Global
Performance |
| Timeline |
| Aberdeen China Oppty |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| Frontier Mfg Global |
Aberdeen China and Frontier Mfg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aberdeen China and Frontier Mfg
The main advantage of trading using opposite Aberdeen China and Frontier Mfg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aberdeen China position performs unexpectedly, Frontier Mfg 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 Frontier Mfg will offset losses from the drop in Frontier Mfg's long position.| Aberdeen China vs. Maryland Short Term Tax Free | Aberdeen China vs. Calvert Short Duration | Aberdeen China vs. Touchstone Ultra Short | Aberdeen China vs. Limited Term Tax |
| Frontier Mfg vs. Astor Longshort Fund | Frontier Mfg vs. Barings Active Short | Frontier Mfg vs. Rbc Short Duration | Frontier Mfg vs. Calvert Short Duration |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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