Correlation Between Aberdeen Select and Amg Timessquare
Can any of the company-specific risk be diversified away by investing in both Aberdeen Select and Amg Timessquare 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 Select and Amg Timessquare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aberdeen Select International and Amg Timessquare Mid, you can compare the effects of market volatilities on Aberdeen Select and Amg Timessquare 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 Select with a short position of Amg Timessquare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aberdeen Select and Amg Timessquare.
Diversification Opportunities for Aberdeen Select and Amg Timessquare
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aberdeen and Amg is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Aberdeen Select International and Amg Timessquare Mid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amg Timessquare Mid and Aberdeen Select 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 Select International are associated (or correlated) with Amg Timessquare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amg Timessquare Mid has no effect on the direction of Aberdeen Select i.e., Aberdeen Select and Amg Timessquare go up and down completely randomly.
Pair Corralation between Aberdeen Select and Amg Timessquare
Assuming the 90 days horizon Aberdeen Select International is expected to under-perform the Amg Timessquare. But the mutual fund apears to be less risky and, when comparing its historical volatility, Aberdeen Select International is 1.66 times less risky than Amg Timessquare. The mutual fund trades about -0.13 of its potential returns per unit of risk. The Amg Timessquare Mid is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 1,710 in Amg Timessquare Mid on August 28, 2024 and sell it today you would earn a total of 98.00 from holding Amg Timessquare Mid or generate 5.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Aberdeen Select International vs. Amg Timessquare Mid
Performance |
| Timeline |
| Aberdeen Select Inte |
| Amg Timessquare Mid |
Aberdeen Select and Amg Timessquare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aberdeen Select and Amg Timessquare
The main advantage of trading using opposite Aberdeen Select and Amg Timessquare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aberdeen Select position performs unexpectedly, Amg Timessquare 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 Amg Timessquare will offset losses from the drop in Amg Timessquare's long position.| Aberdeen Select vs. Marsico 21st Century | Aberdeen Select vs. Harbor International Fund | Aberdeen Select vs. Loomis Sayles Bond | Aberdeen Select vs. Northern Small Cap |
| Amg Timessquare vs. Classic Value Fund | Amg Timessquare vs. Invesco Global Real | Amg Timessquare vs. Cambiar Opportunity Fund | Amg Timessquare vs. Touchstone Sustainability And |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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