Correlation Between Crossmark Steward and Aberdeen
Can any of the company-specific risk be diversified away by investing in both Crossmark Steward and Aberdeen 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 Crossmark Steward and Aberdeen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Crossmark Steward Equity and Aberdeen Multi Cap Equity, you can compare the effects of market volatilities on Crossmark Steward and Aberdeen 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 Crossmark Steward with a short position of Aberdeen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crossmark Steward and Aberdeen.
Diversification Opportunities for Crossmark Steward and Aberdeen
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Crossmark and Aberdeen is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Crossmark Steward Equity and Aberdeen Multi Cap Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aberdeen Multi Cap and Crossmark Steward 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 Crossmark Steward Equity are associated (or correlated) with Aberdeen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aberdeen Multi Cap has no effect on the direction of Crossmark Steward i.e., Crossmark Steward and Aberdeen go up and down completely randomly.
Pair Corralation between Crossmark Steward and Aberdeen
Assuming the 90 days horizon Crossmark Steward Equity is expected to under-perform the Aberdeen. But the mutual fund apears to be less risky and, when comparing its historical volatility, Crossmark Steward Equity is 1.58 times less risky than Aberdeen. The mutual fund trades about -0.19 of its potential returns per unit of risk. The Aberdeen Multi Cap Equity is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,366 in Aberdeen Multi Cap Equity on August 26, 2024 and sell it today you would earn a total of 25.00 from holding Aberdeen Multi Cap Equity or generate 1.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Crossmark Steward Equity vs. Aberdeen Multi Cap Equity
Performance |
| Timeline |
| Crossmark Steward Equity |
| Aberdeen Multi Cap |
Crossmark Steward and Aberdeen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Crossmark Steward and Aberdeen
The main advantage of trading using opposite Crossmark Steward and Aberdeen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crossmark Steward position performs unexpectedly, Aberdeen 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 will offset losses from the drop in Aberdeen's long position.| Crossmark Steward vs. Alpine High Yield | Crossmark Steward vs. Dunham High Yield | Crossmark Steward vs. Pgim High Yield | Crossmark Steward vs. Pace High Yield |
| Aberdeen vs. Barings Emerging Markets | Aberdeen vs. Western Asset Diversified | Aberdeen vs. Rbc Emerging Markets | Aberdeen vs. Crossmark Steward Equity |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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