Correlation Between Victory Floating and Aberdeen Income
Can any of the company-specific risk be diversified away by investing in both Victory Floating and Aberdeen Income 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 Victory Floating and Aberdeen Income into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Victory Floating Rate and Aberdeen Income Credit, you can compare the effects of market volatilities on Victory Floating and Aberdeen Income 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 Victory Floating with a short position of Aberdeen Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of Victory Floating and Aberdeen Income.
Diversification Opportunities for Victory Floating and Aberdeen Income
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Victory and Aberdeen is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Victory Floating Rate and Aberdeen Income Credit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aberdeen Income Credit and Victory 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 Victory Floating Rate are associated (or correlated) with Aberdeen Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aberdeen Income Credit has no effect on the direction of Victory Floating i.e., Victory Floating and Aberdeen Income go up and down completely randomly.
Pair Corralation between Victory Floating and Aberdeen Income
Assuming the 90 days horizon Victory Floating is expected to generate 1074.0 times less return on investment than Aberdeen Income. But when comparing it to its historical volatility, Victory Floating Rate is 4.56 times less risky than Aberdeen Income. It trades about 0.0 of its potential returns per unit of risk. Aberdeen Income Credit is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 592.00 in Aberdeen Income Credit on November 2, 2024 and sell it today you would earn a total of 12.00 from holding Aberdeen Income Credit or generate 2.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Victory Floating Rate vs. Aberdeen Income Credit
Performance |
| Timeline |
| Victory Floating Rate |
| Aberdeen Income Credit |
Victory Floating and Aberdeen Income Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Victory Floating and Aberdeen Income
The main advantage of trading using opposite Victory Floating and Aberdeen Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Victory Floating position performs unexpectedly, Aberdeen Income 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 Income will offset losses from the drop in Aberdeen Income's long position.| Victory Floating vs. Hartford Moderate Allocation | Victory Floating vs. Fisher Large Cap | Victory Floating vs. Balanced Allocation Fund | Victory Floating vs. T Rowe Price |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |