Correlation Between Abrdn Physical and Abrdn ETFs

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

By analyzing existing cross correlation between abrdn Physical Silver and abrdn ETFs , you can compare the effects of market volatilities on Abrdn Physical and Abrdn ETFs 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 Abrdn Physical with a short position of Abrdn ETFs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Abrdn Physical and Abrdn ETFs.

Diversification Opportunities for Abrdn Physical and Abrdn ETFs

0.91

Correlation Coefficient

Abrdn Physical  Abrdn ETFs

Almost no diversification

The 3 months correlation between Abrdn and Abrdn is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding abrdn Physical Silver and abrdn ETFs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on abrdn ETFs and Abrdn Physical 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 abrdn Physical Silver are associated (or correlated) with Abrdn ETFs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of abrdn ETFs has no effect on the direction of Abrdn Physical i.e., Abrdn Physical and Abrdn ETFs go up and down completely randomly.

Pair Corralation between Abrdn Physical and Abrdn ETFs

Given the investment horizon of 90 days abrdn Physical Silver is expected to generate 1.45 times more return on investment than Abrdn ETFs. However, Abrdn Physical is 1.45 times more volatile than abrdn ETFs . It trades about 0.21 of its potential returns per unit of risk. abrdn ETFs is currently generating about 0.21 per unit of risk. If you would invest  2,779  in abrdn Physical Silver on December 19, 2024 and sell it today you would earn a total of  456.00  from holding abrdn Physical Silver or generate 16.41% return on investment over 90 days.

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

abrdn Physical Silver  vs.  abrdn ETFs

abrdn Physical Silver

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in abrdn Physical Silver are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Even with relatively conflicting basic indicators, Abrdn Physical reported solid returns over the last few months and may actually be approaching a breakup point.

abrdn ETFs

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in abrdn ETFs are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of very inconsistent forward indicators, Abrdn ETFs may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Abrdn Physical and Abrdn ETFs

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

The idea behind abrdn Physical Silver and abrdn ETFs 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..