Correlation Between Aberdeen Gbl and Astor Long/short
Can any of the company-specific risk be diversified away by investing in both Aberdeen Gbl and Astor Long/short 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 Gbl and Astor Long/short into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aberdeen Gbl Small and Astor Longshort Fund, you can compare the effects of market volatilities on Aberdeen Gbl and Astor Long/short 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 Gbl with a short position of Astor Long/short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aberdeen Gbl and Astor Long/short.
Diversification Opportunities for Aberdeen Gbl and Astor Long/short
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aberdeen and Astor is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Aberdeen Gbl Small and Astor Longshort Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astor Long/short and Aberdeen Gbl 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 Gbl Small are associated (or correlated) with Astor Long/short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astor Long/short has no effect on the direction of Aberdeen Gbl i.e., Aberdeen Gbl and Astor Long/short go up and down completely randomly.
Pair Corralation between Aberdeen Gbl and Astor Long/short
Assuming the 90 days horizon Aberdeen Gbl Small is expected to generate 2.4 times more return on investment than Astor Long/short. However, Aberdeen Gbl is 2.4 times more volatile than Astor Longshort Fund. It trades about 0.05 of its potential returns per unit of risk. Astor Longshort Fund is currently generating about 0.11 per unit of risk. If you would invest 2,337 in Aberdeen Gbl Small on September 5, 2024 and sell it today you would earn a total of 517.00 from holding Aberdeen Gbl Small or generate 22.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Aberdeen Gbl Small vs. Astor Longshort Fund
Performance |
| Timeline |
| Aberdeen Gbl Small |
| Astor Long/short |
Aberdeen Gbl and Astor Long/short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aberdeen Gbl and Astor Long/short
The main advantage of trading using opposite Aberdeen Gbl and Astor Long/short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aberdeen Gbl position performs unexpectedly, Astor Long/short 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 Astor Long/short will offset losses from the drop in Astor Long/short's long position.| Aberdeen Gbl vs. Goldman Sachs Growth | Aberdeen Gbl vs. Smallcap Growth Fund | Aberdeen Gbl vs. L Abbett Growth | Aberdeen Gbl vs. Mid Cap Growth |
| Astor Long/short vs. Ab Government Exchange | Astor Long/short vs. Edward Jones Money | Astor Long/short vs. Hsbc Treasury Money | Astor Long/short vs. American Century Municipal |
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 Stocks Directory module to find actively traded stocks across global markets.
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