Correlation Between Aberdeen Global and Voya Asia

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

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

Diversification Opportunities for Aberdeen Global and Voya Asia

0.71

Correlation Coefficient

Aberdeen Global  Voya Asia

Poor diversification

The 3 months correlation between Aberdeen and Voya is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Aberdeen Global IF and Voya Asia Pacific in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Asia Pacific 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 IF are associated (or correlated) with Voya Asia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Asia Pacific has no effect on the direction of Aberdeen Global i.e., Aberdeen Global and Voya Asia go up and down completely randomly.

Pair Corralation between Aberdeen Global and Voya Asia

Considering the 90-day investment horizon Aberdeen Global IF is expected to generate 1.3 times more return on investment than Voya Asia. However, Aberdeen Global is 1.3 times more volatile than Voya Asia Pacific. It trades about 0.09 of its potential returns per unit of risk. Voya Asia Pacific is currently generating about 0.09 per unit of risk. If you would invest  571.00  in Aberdeen Global IF on December 27, 2024 and sell it today you would earn a total of  31.00  from holding Aberdeen Global IF or generate 5.43% return on investment over 90 days.

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

Aberdeen Global IF  vs.  Voya Asia Pacific

Aberdeen Global IF

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Aberdeen Global IF are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy fundamental indicators, Aberdeen Global is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Voya Asia Pacific

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Voya Asia Pacific are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of rather sound basic indicators, Voya Asia is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Aberdeen Global and Voya Asia

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

The idea behind Aberdeen Global IF and Voya Asia Pacific 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.