Correlation Between Highland Floating and Abrdn Emerging
Can any of the company-specific risk be diversified away by investing in both Highland Floating and Abrdn Emerging 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 Highland Floating and Abrdn Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Highland Floating Rate and Abrdn Emerging Markets, you can compare the effects of market volatilities on Highland Floating and Abrdn Emerging 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 Highland Floating with a short position of Abrdn Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Highland Floating and Abrdn Emerging.
Diversification Opportunities for Highland Floating and Abrdn Emerging
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Highland and Abrdn is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Highland Floating Rate and Abrdn Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Abrdn Emerging Markets and Highland Floating 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 Highland Floating Rate are associated (or correlated) with Abrdn Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Abrdn Emerging Markets has no effect on the direction of Highland Floating i.e., Highland Floating and Abrdn Emerging go up and down completely randomly.
Pair Corralation between Highland Floating and Abrdn Emerging
Given the investment horizon of 90 days Highland Floating Rate is expected to generate 1.91 times more return on investment than Abrdn Emerging. However, Highland Floating is 1.91 times more volatile than Abrdn Emerging Markets. It trades about 0.09 of its potential returns per unit of risk. Abrdn Emerging Markets is currently generating about -0.12 per unit of risk. If you would invest 566.00 in Highland Floating Rate on August 31, 2024 and sell it today you would earn a total of 22.00 from holding Highland Floating Rate or generate 3.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Highland Floating Rate vs. Abrdn Emerging Markets
Performance |
| Timeline |
| Highland Floating Rate |
| Abrdn Emerging Markets |
Highland Floating and Abrdn Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Highland Floating and Abrdn Emerging
The main advantage of trading using opposite Highland Floating and Abrdn Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Highland Floating position performs unexpectedly, Abrdn Emerging 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 Abrdn Emerging will offset losses from the drop in Abrdn Emerging's long position.| Highland Floating vs. Neuberger Berman Next | Highland Floating vs. SRH Total Return | Highland Floating vs. Nuveen Municipal Credit | Highland Floating vs. Doubleline Income Solutions |
| Abrdn Emerging vs. DWS Municipal Income | Abrdn Emerging vs. Blackrock Muni Intermediate | Abrdn Emerging vs. Blackrock Muniyield | Abrdn Emerging vs. Flow Capital Corp |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |