Correlation Between Aberdeen Global and Aberdeen Multi
Can any of the company-specific risk be diversified away by investing in both Aberdeen Global 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 Aberdeen Global and Aberdeen Multi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aberdeen Global Equty and Aberdeen Multi Cap Equity, you can compare the effects of market volatilities on Aberdeen Global 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 Aberdeen Global with a short position of Aberdeen Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aberdeen Global and Aberdeen Multi.
Diversification Opportunities for Aberdeen Global and Aberdeen Multi
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Aberdeen and Aberdeen is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Aberdeen Global Equty 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 Aberdeen Global 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 Global Equty 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 Aberdeen Global i.e., Aberdeen Global and Aberdeen Multi go up and down completely randomly.
Pair Corralation between Aberdeen Global and Aberdeen Multi
Assuming the 90 days horizon Aberdeen Global Equty is expected to generate 1.22 times more return on investment than Aberdeen Multi. However, Aberdeen Global is 1.22 times more volatile than Aberdeen Multi Cap Equity. It trades about 0.23 of its potential returns per unit of risk. Aberdeen Multi Cap Equity is currently generating about 0.14 per unit of risk. If you would invest 1,267 in Aberdeen Global Equty on May 30, 2025 and sell it today you would earn a total of 143.00 from holding Aberdeen Global Equty or generate 11.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aberdeen Global Equty vs. Aberdeen Multi Cap Equity
Performance |
| Timeline |
| Aberdeen Global Equty |
| Aberdeen Multi Cap |
Aberdeen Global and Aberdeen Multi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aberdeen Global and Aberdeen Multi
The main advantage of trading using opposite Aberdeen Global and Aberdeen Multi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aberdeen Global 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.| Aberdeen Global vs. Putnam Global Technology | Aberdeen Global vs. Icon Information Technology | Aberdeen Global vs. Nationwide Bailard Technology | Aberdeen Global vs. Franklin Biotechnology Discovery |
| Aberdeen Multi vs. Aberdeen Emerging Markets | Aberdeen Multi vs. Aberdeen Emerging Markets | Aberdeen Multi vs. Aberdeen Emerging Markets | Aberdeen Multi 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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