Correlation Between Aberdeen Gbl and Aberdeen

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

By analyzing existing cross correlation between Aberdeen Gbl Small and Aberdeen Multi Cap Equity, you can compare the effects of market volatilities on Aberdeen Gbl and Aberdeen 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 Gbl with a short position of Aberdeen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aberdeen Gbl and Aberdeen.

Diversification Opportunities for Aberdeen Gbl and Aberdeen

-0.29

Correlation Coefficient

Aberdeen Gbl  Aberdeen

Very good diversification

The 3 months correlation between Aberdeen and Aberdeen is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Aberdeen Gbl Small and Aberdeen Multi Cap Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aberdeen Multi Cap and Aberdeen Gbl 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 Gbl Small are associated (or correlated) with Aberdeen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aberdeen Multi Cap has no effect on the direction of Aberdeen Gbl i.e., Aberdeen Gbl and Aberdeen go up and down completely randomly.

Pair Corralation between Aberdeen Gbl and Aberdeen

Assuming the 90 days horizon Aberdeen Gbl Small is expected to under-perform the Aberdeen. In addition to that, Aberdeen Gbl is 1.12 times more volatile than Aberdeen Multi Cap Equity. It trades about -0.02 of its total potential returns per unit of risk. Aberdeen Multi Cap Equity is currently generating about 0.16 per unit of volatility. If you would invest  1,323  in Aberdeen Multi Cap Equity on September 2, 2024 and sell it today you would earn a total of  96.00  from holding Aberdeen Multi Cap Equity or generate 7.26% return on investment over 90 days.

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

Aberdeen Gbl Small  vs.  Aberdeen Multi Cap Equity

Aberdeen Gbl Small

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Aberdeen Gbl Small has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong fundamental indicators, Aberdeen Gbl is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Aberdeen Multi Cap

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Aberdeen Multi Cap Equity are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Aberdeen may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Aberdeen Gbl and Aberdeen

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

The idea behind Aberdeen Gbl Small and Aberdeen Multi Cap Equity 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.