Correlation Between Aberdeen Gbl and Aberdeen China
Can any of the company-specific risk be diversified away by investing in both Aberdeen Gbl and Aberdeen China 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 China into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aberdeen Gbl Eq and Aberdeen China Oppty, you can compare the effects of market volatilities on Aberdeen Gbl and Aberdeen China 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 China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aberdeen Gbl and Aberdeen China.
Diversification Opportunities for Aberdeen Gbl and Aberdeen China
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Aberdeen and Aberdeen is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Aberdeen Gbl Eq and Aberdeen China Oppty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aberdeen China Oppty 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 Eq are associated (or correlated) with Aberdeen China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aberdeen China Oppty has no effect on the direction of Aberdeen Gbl i.e., Aberdeen Gbl and Aberdeen China go up and down completely randomly.
Pair Corralation between Aberdeen Gbl and Aberdeen China
Assuming the 90 days horizon Aberdeen Gbl is expected to generate 1.34 times less return on investment than Aberdeen China. In addition to that, Aberdeen Gbl is 1.19 times more volatile than Aberdeen China Oppty. It trades about 0.17 of its total potential returns per unit of risk. Aberdeen China Oppty is currently generating about 0.27 per unit of volatility. If you would invest 2,231 in Aberdeen China Oppty on June 4, 2025 and sell it today you would earn a total of 249.00 from holding Aberdeen China Oppty or generate 11.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aberdeen Gbl Eq vs. Aberdeen China Oppty
Performance |
| Timeline |
| Aberdeen Gbl Eq |
| Aberdeen China Oppty |
Aberdeen Gbl and Aberdeen China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aberdeen Gbl and Aberdeen China
The main advantage of trading using opposite Aberdeen Gbl and Aberdeen China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aberdeen Gbl position performs unexpectedly, Aberdeen China 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 China will offset losses from the drop in Aberdeen China's long position.| Aberdeen Gbl vs. Fidelity Advisor Health | Aberdeen Gbl vs. The Hartford Healthcare | Aberdeen Gbl vs. Tekla Healthcare Investors | Aberdeen Gbl vs. Alphacentric Lifesci Healthcare |
| Aberdeen China vs. Aberdeen Gbl Eq | Aberdeen China vs. Aberdeen Gbl Eq | Aberdeen China vs. Aberdeen Global Equty |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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