Correlation Between Ohio Variable and Abrdn Global

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

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

Diversification Opportunities for Ohio Variable and Abrdn Global

-0.07

Correlation Coefficient

Ohio Variable  Abrdn Global

Good diversification

The 3 months correlation between Ohio and Abrdn is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Ohio Variable College and Abrdn Global Infrastructure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Abrdn Global Infrast and Ohio Variable 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 Ohio Variable College are associated (or correlated) with Abrdn Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Abrdn Global Infrast has no effect on the direction of Ohio Variable i.e., Ohio Variable and Abrdn Global go up and down completely randomly.

Pair Corralation between Ohio Variable and Abrdn Global

Assuming the 90 days horizon Ohio Variable is expected to generate 9.03 times less return on investment than Abrdn Global. In addition to that, Ohio Variable is 1.07 times more volatile than Abrdn Global Infrastructure. It trades about 0.01 of its total potential returns per unit of risk. Abrdn Global Infrastructure is currently generating about 0.11 per unit of volatility. If you would invest  1,911  in Abrdn Global Infrastructure on December 28, 2024 and sell it today you would earn a total of  79.00  from holding Abrdn Global Infrastructure or generate 4.13% return on investment over 90 days.

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

Ohio Variable College  vs.  Abrdn Global Infrastructure

Ohio Variable College

Risk-Adjusted Performance

Very Weak

Over the last 90 days Ohio Variable College has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Ohio Variable is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Abrdn Global Infrast

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Abrdn Global Infrastructure are ranked lower than 8 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Abrdn Global is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Ohio Variable and Abrdn Global

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

The idea behind Ohio Variable College and Abrdn Global Infrastructure 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.