Correlation Between Hartford Emerging and Aberdeen Emerging
Can any of the company-specific risk be diversified away by investing in both Hartford Emerging and Aberdeen 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 Hartford Emerging and Aberdeen Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Hartford Emerging and Aberdeen Emerging Markets, you can compare the effects of market volatilities on Hartford Emerging and Aberdeen 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 Hartford Emerging with a short position of Aberdeen Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hartford Emerging and Aberdeen Emerging.
Diversification Opportunities for Hartford Emerging and Aberdeen Emerging
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hartford and Aberdeen is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding The Hartford Emerging and Aberdeen Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aberdeen Emerging Markets and Hartford Emerging 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 The Hartford Emerging are associated (or correlated) with Aberdeen Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aberdeen Emerging Markets has no effect on the direction of Hartford Emerging i.e., Hartford Emerging and Aberdeen Emerging go up and down completely randomly.
Pair Corralation between Hartford Emerging and Aberdeen Emerging
Assuming the 90 days horizon The Hartford Emerging is expected to under-perform the Aberdeen Emerging. But the mutual fund apears to be less risky and, when comparing its historical volatility, The Hartford Emerging is 2.49 times less risky than Aberdeen Emerging. The mutual fund trades about -0.12 of its potential returns per unit of risk. The Aberdeen Emerging Markets is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,355 in Aberdeen Emerging Markets on September 12, 2024 and sell it today you would earn a total of 20.00 from holding Aberdeen Emerging Markets or generate 1.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Hartford Emerging vs. Aberdeen Emerging Markets
Performance |
| Timeline |
| Hartford Emerging |
| Aberdeen Emerging Markets |
Hartford Emerging and Aberdeen Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hartford Emerging and Aberdeen Emerging
The main advantage of trading using opposite Hartford Emerging and Aberdeen Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hartford Emerging position performs unexpectedly, Aberdeen 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 Aberdeen Emerging will offset losses from the drop in Aberdeen Emerging's long position.| Hartford Emerging vs. Fpa Queens Road | Hartford Emerging vs. Ab Small Cap | Hartford Emerging vs. Omni Small Cap Value | Hartford Emerging vs. Boston Partners Small |
| Aberdeen Emerging vs. Putnman Retirement Ready | Aberdeen Emerging vs. Jp Morgan Smartretirement | Aberdeen Emerging vs. Strategic Allocation Moderate | Aberdeen Emerging vs. Jpmorgan Smartretirement 2035 |
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 Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |