Correlation Between Doubleline Emerging and Aberdeen Equity
Can any of the company-specific risk be diversified away by investing in both Doubleline Emerging and Aberdeen Equity 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 Doubleline Emerging and Aberdeen Equity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Doubleline Emerging Markets and Aberdeen Equity Instl, you can compare the effects of market volatilities on Doubleline Emerging and Aberdeen Equity 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 Doubleline Emerging with a short position of Aberdeen Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Doubleline Emerging and Aberdeen Equity.
Diversification Opportunities for Doubleline Emerging and Aberdeen Equity
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Doubleline and Aberdeen is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Doubleline Emerging Markets and Aberdeen Equity Instl in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aberdeen Equity Instl and Doubleline 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 Doubleline Emerging Markets are associated (or correlated) with Aberdeen Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aberdeen Equity Instl has no effect on the direction of Doubleline Emerging i.e., Doubleline Emerging and Aberdeen Equity go up and down completely randomly.
Pair Corralation between Doubleline Emerging and Aberdeen Equity
Assuming the 90 days horizon Doubleline Emerging is expected to generate 1.45 times less return on investment than Aberdeen Equity. But when comparing it to its historical volatility, Doubleline Emerging Markets is 2.34 times less risky than Aberdeen Equity. It trades about 0.07 of its potential returns per unit of risk. Aberdeen Equity Instl is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,172 in Aberdeen Equity Instl on June 12, 2025 and sell it today you would earn a total of 226.00 from holding Aberdeen Equity Instl or generate 19.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Doubleline Emerging Markets vs. Aberdeen Equity Instl
Performance |
| Timeline |
| Doubleline Emerging |
| Aberdeen Equity Instl |
Doubleline Emerging and Aberdeen Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Doubleline Emerging and Aberdeen Equity
The main advantage of trading using opposite Doubleline Emerging and Aberdeen Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Doubleline Emerging position performs unexpectedly, Aberdeen Equity 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 Equity will offset losses from the drop in Aberdeen Equity's long position.| Doubleline Emerging vs. Aig Government Money | Doubleline Emerging vs. Old Westbury Municipal | Doubleline Emerging vs. Alpine Ultra Short | Doubleline Emerging vs. Pace Municipal Fixed |
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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