Correlation Between Aberdeen Gbl and Bbh Intermediate
Can any of the company-specific risk be diversified away by investing in both Aberdeen Gbl and Bbh Intermediate 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 Gbl and Bbh Intermediate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aberdeen Gbl Eq and Bbh Intermediate Municipal, you can compare the effects of market volatilities on Aberdeen Gbl and Bbh Intermediate 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 Gbl with a short position of Bbh Intermediate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aberdeen Gbl and Bbh Intermediate.
Diversification Opportunities for Aberdeen Gbl and Bbh Intermediate
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Aberdeen and Bbh is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Aberdeen Gbl Eq and Bbh Intermediate Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bbh Intermediate Mun and Aberdeen Gbl 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 Gbl Eq are associated (or correlated) with Bbh Intermediate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bbh Intermediate Mun has no effect on the direction of Aberdeen Gbl i.e., Aberdeen Gbl and Bbh Intermediate go up and down completely randomly.
Pair Corralation between Aberdeen Gbl and Bbh Intermediate
Assuming the 90 days horizon Aberdeen Gbl Eq is expected to under-perform the Bbh Intermediate. In addition to that, Aberdeen Gbl is 7.25 times more volatile than Bbh Intermediate Municipal. It trades about 0.0 of its total potential returns per unit of risk. Bbh Intermediate Municipal is currently generating about 0.09 per unit of volatility. If you would invest 953.00 in Bbh Intermediate Municipal on August 30, 2024 and sell it today you would earn a total of 82.00 from holding Bbh Intermediate Municipal or generate 8.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aberdeen Gbl Eq vs. Bbh Intermediate Municipal
Performance |
| Timeline |
| Aberdeen Gbl Eq |
| Bbh Intermediate Mun |
Aberdeen Gbl and Bbh Intermediate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aberdeen Gbl and Bbh Intermediate
The main advantage of trading using opposite Aberdeen Gbl and Bbh Intermediate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aberdeen Gbl position performs unexpectedly, Bbh Intermediate 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 Bbh Intermediate will offset losses from the drop in Bbh Intermediate's long position.| Aberdeen Gbl vs. Barings Emerging Markets | Aberdeen Gbl vs. Shelton Emerging Markets | Aberdeen Gbl vs. Ep Emerging Markets | Aberdeen Gbl vs. Dodge Cox Emerging |
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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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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