Correlation Between Abrdn Emerging and Associated Capital
Can any of the company-specific risk be diversified away by investing in both Abrdn Emerging and Associated Capital 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 Emerging and Associated Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Abrdn Emerging Markets and Associated Capital Group, you can compare the effects of market volatilities on Abrdn Emerging and Associated Capital 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 Emerging with a short position of Associated Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Abrdn Emerging and Associated Capital.
Diversification Opportunities for Abrdn Emerging and Associated Capital
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Abrdn and Associated is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Abrdn Emerging Markets and Associated Capital Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Associated Capital and Abrdn Emerging 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 Emerging Markets are associated (or correlated) with Associated Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Associated Capital has no effect on the direction of Abrdn Emerging i.e., Abrdn Emerging and Associated Capital go up and down completely randomly.
Pair Corralation between Abrdn Emerging and Associated Capital
Considering the 90-day investment horizon Abrdn Emerging Markets is expected to generate 0.88 times more return on investment than Associated Capital. However, Abrdn Emerging Markets is 1.13 times less risky than Associated Capital. It trades about 0.12 of its potential returns per unit of risk. Associated Capital Group is currently generating about 0.03 per unit of risk. If you would invest 504.00 in Abrdn Emerging Markets on March 23, 2025 and sell it today you would earn a total of 65.00 from holding Abrdn Emerging Markets or generate 12.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Abrdn Emerging Markets vs. Associated Capital Group
Performance |
| Timeline |
| Abrdn Emerging Markets |
| Associated Capital |
Abrdn Emerging and Associated Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Abrdn Emerging and Associated Capital
The main advantage of trading using opposite Abrdn Emerging and Associated Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Abrdn Emerging position performs unexpectedly, Associated Capital 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 Associated Capital will offset losses from the drop in Associated Capital's long position.| Abrdn Emerging vs. DWS Municipal Income | Abrdn Emerging vs. Blackrock Muniyield | Abrdn Emerging vs. Flow Capital Corp | Abrdn Emerging vs. Ameritrans Capital Corp |
| Associated Capital vs. Munivest Fund | Associated Capital vs. Blackrock Muniyield Quality | Associated Capital vs. Federated Investors B | Associated Capital vs. Federated Premier Municipal |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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