Correlation Between Fulcrum Metals and Aberdeen Diversified

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Fulcrum Metals and Aberdeen Diversified 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 Fulcrum Metals and Aberdeen Diversified into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fulcrum Metals PLC and Aberdeen Diversified Income, you can compare the effects of market volatilities on Fulcrum Metals and Aberdeen Diversified 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 Fulcrum Metals with a short position of Aberdeen Diversified. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fulcrum Metals and Aberdeen Diversified.

Diversification Opportunities for Fulcrum Metals and Aberdeen Diversified

FulcrumAberdeenDiversified AwayFulcrumAberdeenDiversified Away100%
0.58
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Fulcrum and Aberdeen is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Fulcrum Metals PLC and Aberdeen Diversified Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aberdeen Diversified and Fulcrum Metals 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 Fulcrum Metals PLC are associated (or correlated) with Aberdeen Diversified. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aberdeen Diversified has no effect on the direction of Fulcrum Metals i.e., Fulcrum Metals and Aberdeen Diversified go up and down completely randomly.

Pair Corralation between Fulcrum Metals and Aberdeen Diversified

Assuming the 90 days trading horizon Fulcrum Metals PLC is expected to generate 0.93 times more return on investment than Aberdeen Diversified. However, Fulcrum Metals PLC is 1.07 times less risky than Aberdeen Diversified. It trades about 0.22 of its potential returns per unit of risk. Aberdeen Diversified Income is currently generating about 0.05 per unit of risk. If you would invest  750.00  in Fulcrum Metals PLC on November 19, 2024 and sell it today you would earn a total of  125.00  from holding Fulcrum Metals PLC or generate 16.67% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Fulcrum Metals PLC  vs.  Aberdeen Diversified Income

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb 051015
JavaScript chart by amCharts 3.21.15FMET ADIG
       Timeline  
Fulcrum Metals PLC 

Risk-Adjusted Performance

Solid

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Fulcrum Metals PLC are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Fulcrum Metals unveiled solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb7.588.59
Aberdeen Diversified 

Risk-Adjusted Performance

Insignificant

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Aberdeen Diversified Income are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Aberdeen Diversified is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb41.54242.54343.54444.54545.546

Fulcrum Metals and Aberdeen Diversified Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-3.36-2.52-1.67-0.830.00.911.852.793.734.67 0.050.100.150.200.250.30
JavaScript chart by amCharts 3.21.15FMET ADIG
       Returns  

Pair Trading with Fulcrum Metals and Aberdeen Diversified

The main advantage of trading using opposite Fulcrum Metals and Aberdeen Diversified positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fulcrum Metals position performs unexpectedly, Aberdeen Diversified 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 Diversified will offset losses from the drop in Aberdeen Diversified's long position.
The idea behind Fulcrum Metals PLC and Aberdeen Diversified Income 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..

Other Complementary Tools

Risk-Return Analysis
View associations between returns expected from investment and the risk you assume
FinTech Suite
Use AI to screen and filter profitable investment opportunities
Premium Stories
Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope
Portfolio Holdings
Check your current holdings and cash postion to detemine if your portfolio needs rebalancing
AI Portfolio Architect
Use AI to generate optimal portfolios and find profitable investment opportunities