Correlation Between Aberden Emerng and Aberdeen
Can any of the company-specific risk be diversified away by investing in both Aberden Emerng 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 Aberden Emerng and Aberdeen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aberden Emerng Mrkts and Aberdeen Multi Cap Equity, you can compare the effects of market volatilities on Aberden Emerng 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 Aberden Emerng with a short position of Aberdeen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aberden Emerng and Aberdeen.
Diversification Opportunities for Aberden Emerng and Aberdeen
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Aberden and Aberdeen is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Aberden Emerng Mrkts 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 Aberden Emerng 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 Aberden Emerng Mrkts 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 Aberden Emerng i.e., Aberden Emerng and Aberdeen go up and down completely randomly.
Pair Corralation between Aberden Emerng and Aberdeen
Assuming the 90 days horizon Aberden Emerng Mrkts is expected to generate 1.19 times more return on investment than Aberdeen. However, Aberden Emerng is 1.19 times more volatile than Aberdeen Multi Cap Equity. It trades about 0.19 of its potential returns per unit of risk. Aberdeen Multi Cap Equity is currently generating about 0.08 per unit of risk. If you would invest 1,467 in Aberden Emerng Mrkts on June 9, 2025 and sell it today you would earn a total of 131.00 from holding Aberden Emerng Mrkts or generate 8.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aberden Emerng Mrkts vs. Aberdeen Multi Cap Equity
Performance |
| Timeline |
| Aberden Emerng Mrkts |
| Aberdeen Multi Cap |
Aberden Emerng and Aberdeen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aberden Emerng and Aberdeen
The main advantage of trading using opposite Aberden Emerng and Aberdeen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aberden Emerng 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.| Aberden Emerng vs. Harbor International Fund | Aberden Emerng vs. Loomis Sayles Bond | Aberden Emerng vs. Marsico 21st Century | Aberden Emerng vs. Northern Small Cap |
| Aberdeen vs. Aberdeen Emerging Markets | Aberdeen vs. Aberdeen Emerging Markets | Aberdeen vs. Aberdeen Emerging Markets | Aberdeen vs. Aberdeen Gbl Eq |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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