Correlation Between Abrdn Short and Aberdeen Multi
Can any of the company-specific risk be diversified away by investing in both Abrdn Short and Aberdeen Multi 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 Short and Aberdeen Multi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Abrdn Short Duration and Aberdeen Multi Cap Equity, you can compare the effects of market volatilities on Abrdn Short and Aberdeen Multi 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 Short with a short position of Aberdeen Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Abrdn Short and Aberdeen Multi.
Diversification Opportunities for Abrdn Short and Aberdeen Multi
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Abrdn and Aberdeen is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Abrdn Short Duration 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 Abrdn Short 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 Short Duration are associated (or correlated) with Aberdeen Multi. 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 Abrdn Short i.e., Abrdn Short and Aberdeen Multi go up and down completely randomly.
Pair Corralation between Abrdn Short and Aberdeen Multi
Assuming the 90 days horizon Abrdn Short Duration is expected to under-perform the Aberdeen Multi. But the mutual fund apears to be less risky and, when comparing its historical volatility, Abrdn Short Duration is 4.83 times less risky than Aberdeen Multi. The mutual fund trades about -0.01 of its potential returns per unit of risk. The Aberdeen Multi Cap Equity is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,353 in Aberdeen Multi Cap Equity on June 3, 2025 and sell it today you would earn a total of 57.00 from holding Aberdeen Multi Cap Equity or generate 4.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Abrdn Short Duration vs. Aberdeen Multi Cap Equity
Performance |
| Timeline |
| Abrdn Short Duration |
| Aberdeen Multi Cap |
Risk-Adjusted Performance
Fair
Weak | Strong |
Abrdn Short and Aberdeen Multi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Abrdn Short and Aberdeen Multi
The main advantage of trading using opposite Abrdn Short and Aberdeen Multi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Abrdn Short position performs unexpectedly, Aberdeen Multi 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 Multi will offset losses from the drop in Aberdeen Multi's long position.| Abrdn Short vs. Aberdeen Emerging Markets | Abrdn Short vs. Aberdeen Emerging Markets | Abrdn Short vs. Aberdeen Emerging Markets | Abrdn Short vs. Aberdeen Gbl Eq |
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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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