Correlation Between Marsico Global and Aberdeen Select

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

By analyzing existing cross correlation between Marsico Global and Aberdeen Select International, you can compare the effects of market volatilities on Marsico Global and Aberdeen Select 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 Marsico Global with a short position of Aberdeen Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marsico Global and Aberdeen Select.

Diversification Opportunities for Marsico Global and Aberdeen Select

-0.59

Correlation Coefficient

Marsico Global  Aberdeen Select

Excellent diversification

The 3 months correlation between Marsico and Aberdeen is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Marsico Global and Aberdeen Select International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aberdeen Select Inte and Marsico 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 Marsico Global are associated (or correlated) with Aberdeen Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aberdeen Select Inte has no effect on the direction of Marsico Global i.e., Marsico Global and Aberdeen Select go up and down completely randomly.

Pair Corralation between Marsico Global and Aberdeen Select

Assuming the 90 days horizon Marsico Global is expected to generate 1.68 times more return on investment than Aberdeen Select. However, Marsico Global is 1.68 times more volatile than Aberdeen Select International. It trades about 0.13 of its potential returns per unit of risk. Aberdeen Select International is currently generating about -0.21 per unit of risk. If you would invest  2,526  in Marsico Global on September 21, 2024 and sell it today you would earn a total of  219.00  from holding Marsico Global or generate 8.67% return on investment over 90 days.

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

Marsico Global  vs.  Aberdeen Select International

Marsico Global

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Marsico Global are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Marsico Global may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Aberdeen Select Inte

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Aberdeen Select International has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Pair Trading with Marsico Global and Aberdeen Select

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

The idea behind Marsico Global and Aberdeen Select International 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.