Correlation Between Aberdeen Global and Macquariefirst

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

By analyzing existing cross correlation between Aberdeen Global Dynamic and Macquariefirst Tr Global, you can compare the effects of market volatilities on Aberdeen Global and Macquariefirst 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 Macquariefirst. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aberdeen Global and Macquariefirst.

Diversification Opportunities for Aberdeen Global and Macquariefirst

-0.3

Correlation Coefficient

Aberdeen Global  Macquariefirst

Very good diversification

The 3 months correlation between Aberdeen and Macquariefirst is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Aberdeen Global Dynamic and Macquariefirst Tr Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Macquariefirst Tr Global 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 Dynamic are associated (or correlated) with Macquariefirst. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Macquariefirst Tr Global has no effect on the direction of Aberdeen Global i.e., Aberdeen Global and Macquariefirst go up and down completely randomly.

Pair Corralation between Aberdeen Global and Macquariefirst

If you would invest  845.00  in Macquariefirst Tr Global on September 23, 2024 and sell it today you would earn a total of  0.00  from holding Macquariefirst Tr Global or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	4.76%
Values	Daily Returns

Aberdeen Global Dynamic  vs.  Macquariefirst Tr Global

Aberdeen Global Dynamic

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Aberdeen Global Dynamic has generated negative risk-adjusted returns adding no value to fund investors. In spite of rather sound technical and fundamental indicators, Aberdeen Global is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Macquariefirst Tr Global

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Macquariefirst Tr Global has generated negative risk-adjusted returns adding no value to fund investors. In spite of rather sound technical and fundamental indicators, Macquariefirst is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Aberdeen Global and Macquariefirst

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

The idea behind Aberdeen Global Dynamic and Macquariefirst Tr Global 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.