Correlation Between Aberdeen Global and Aberdeen Global

Can any of the company-specific risk be diversified away by investing in both Aberdeen Global and Aberdeen Global 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 Global and Aberdeen Global into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Aberdeen Global Asian and Aberdeen Global Asia, you can compare the effects of market volatilities on Aberdeen Global and Aberdeen Global 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 Global with a short position of Aberdeen Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aberdeen Global and Aberdeen Global.

Diversification Opportunities for Aberdeen Global and Aberdeen Global

0.0

Correlation Coefficient

Aberdeen Global  Aberdeen Global

Pay attention - limited upside

The 3 months correlation between Aberdeen and Aberdeen is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aberdeen Global Asian and Aberdeen Global Asia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aberdeen Global Asia and Aberdeen Global 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 Global Asian are associated (or correlated) with Aberdeen Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aberdeen Global Asia has no effect on the direction of Aberdeen Global i.e., Aberdeen Global and Aberdeen Global go up and down completely randomly.

Pair Corralation between Aberdeen Global and Aberdeen Global

If you would invest (100.00) in Aberdeen Global Asia on December 22, 2024 and sell it today you would earn a total of  100.00  from holding Aberdeen Global Asia or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Aberdeen Global Asian  vs.  Aberdeen Global Asia

Aberdeen Global Asian

Risk-Adjusted Performance

Very Weak

Over the last 90 days Aberdeen Global Asian has generated negative risk-adjusted returns adding no value to fund investors. Despite somewhat strong fundamental indicators, Aberdeen Global is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Aberdeen Global Asia

Risk-Adjusted Performance

Very Weak

Over the last 90 days Aberdeen Global Asia has generated negative risk-adjusted returns adding no value to fund investors. Despite somewhat strong fundamental indicators, Aberdeen Global is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Aberdeen Global and Aberdeen Global

The main advantage of trading using opposite Aberdeen Global and Aberdeen Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aberdeen Global position performs unexpectedly, Aberdeen Global 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 Global will offset losses from the drop in Aberdeen Global's long position.

The idea behind Aberdeen Global Asian and Aberdeen Global Asia pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.