Correlation Between FF Global and Aberdeen Global

Can any of the company-specific risk be diversified away by investing in both FF 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 FF 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 FF Global and Aberdeen Global Asia, you can compare the effects of market volatilities on FF 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 FF Global with a short position of Aberdeen Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of FF Global and Aberdeen Global.

Diversification Opportunities for FF Global and Aberdeen Global

0.0

Correlation Coefficient

FF Global  Aberdeen Global

Pay attention - limited upside

The 3 months correlation between FJ2P and Aberdeen is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FF Global 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 FF 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 FF Global 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 FF Global i.e., FF Global and Aberdeen Global go up and down completely randomly.

Pair Corralation between FF Global and Aberdeen Global

If you would invest  7,395  in FF Global on October 9, 2024 and sell it today you would earn a total of  65.00  from holding FF Global or generate 0.88% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

FF Global  vs.  Aberdeen Global Asia

FF Global

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in FF Global are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of rather weak technical and fundamental indicators, FF Global may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Aberdeen Global Asia

Risk-Adjusted Performance

0 of 100

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 FF Global and Aberdeen Global

The main advantage of trading using opposite FF Global and Aberdeen Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FF 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 FF Global 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 Global Correlations module to find global opportunities by holding instruments from different markets.