Correlation Between Advanced Health and Abrdn Emerging

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

By analyzing existing cross correlation between Advanced Health Intelligence and Abrdn Emerging Markets, you can compare the effects of market volatilities on Advanced Health and Abrdn Emerging 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 Advanced Health with a short position of Abrdn Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advanced Health and Abrdn Emerging.

Diversification Opportunities for Advanced Health and Abrdn Emerging

0.0

Correlation Coefficient

Advanced Health  Abrdn Emerging

Pay attention - limited upside

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

Pair Corralation between Advanced Health and Abrdn Emerging

If you would invest  515.00  in Abrdn Emerging Markets on October 4, 2024 and sell it today you would earn a total of  4.00  from holding Abrdn Emerging Markets or generate 0.78% return on investment over 90 days.

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

Advanced Health Intelligence  vs.  Abrdn Emerging Markets

Advanced Health Inte

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Advanced Health Intelligence has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong technical indicators, Advanced Health is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Abrdn Emerging Markets

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Abrdn Emerging Markets has generated negative risk-adjusted returns adding no value to fund investors. Despite latest fragile performance, the Fund's technical and fundamental indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the mutual fund stockholders.

Pair Trading with Advanced Health and Abrdn Emerging

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

The idea behind Advanced Health Intelligence and Abrdn Emerging Markets 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.

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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.