Correlation Between Winmill Co and Aberdeen International
Can any of the company-specific risk be diversified away by investing in both Winmill Co and Aberdeen International 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 Winmill Co and Aberdeen International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Winmill Co Incorporated and Aberdeen International, you can compare the effects of market volatilities on Winmill Co and Aberdeen International 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 Winmill Co with a short position of Aberdeen International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Winmill Co and Aberdeen International.
Diversification Opportunities for Winmill Co and Aberdeen International
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Winmill and Aberdeen is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Winmill Co Incorporated and Aberdeen International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aberdeen International and Winmill Co 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 Winmill Co Incorporated are associated (or correlated) with Aberdeen International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aberdeen International has no effect on the direction of Winmill Co i.e., Winmill Co and Aberdeen International go up and down completely randomly.
Pair Corralation between Winmill Co and Aberdeen International
If you would invest 3.00 in Aberdeen International on August 29, 2024 and sell it today you would earn a total of 0.60 from holding Aberdeen International or generate 20.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Winmill Co Incorporated vs. Aberdeen International
Performance |
| Timeline |
| Winmill Co |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Aberdeen International |
Winmill Co and Aberdeen International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Winmill Co and Aberdeen International
The main advantage of trading using opposite Winmill Co and Aberdeen International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Winmill Co position performs unexpectedly, Aberdeen International 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 International will offset losses from the drop in Aberdeen International's long position.| Winmill Co vs. Virtus Dividend Interest | Winmill Co vs. Central Securities | Winmill Co vs. Aberdeen International | Winmill Co vs. Bimini Capital Management |
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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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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