Correlation Between Quantitative and Aberdeen
Can any of the company-specific risk be diversified away by investing in both Quantitative 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 Quantitative and Aberdeen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Quantitative Longshort Equity and Aberdeen Equity A, you can compare the effects of market volatilities on Quantitative 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 Quantitative with a short position of Aberdeen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Quantitative and Aberdeen.
Diversification Opportunities for Quantitative and Aberdeen
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Quantitative and Aberdeen is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Quantitative Longshort Equity and Aberdeen Equity A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aberdeen Equity A and Quantitative 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 Quantitative Longshort Equity 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 Equity A has no effect on the direction of Quantitative i.e., Quantitative and Aberdeen go up and down completely randomly.
Pair Corralation between Quantitative and Aberdeen
Assuming the 90 days horizon Quantitative Longshort Equity is expected to generate 0.62 times more return on investment than Aberdeen. However, Quantitative Longshort Equity is 1.6 times less risky than Aberdeen. It trades about 0.1 of its potential returns per unit of risk. Aberdeen Equity A is currently generating about 0.04 per unit of risk. If you would invest 1,431 in Quantitative Longshort Equity on September 4, 2025 and sell it today you would earn a total of 39.00 from holding Quantitative Longshort Equity or generate 2.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Quantitative Longshort Equity vs. Aberdeen Equity A
Performance |
| Timeline |
| Quantitative Longshort |
| Aberdeen Equity A |
Quantitative and Aberdeen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Quantitative and Aberdeen
The main advantage of trading using opposite Quantitative and Aberdeen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Quantitative 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.| Quantitative vs. Glenmede International Secured | Quantitative vs. Equity Income Portfolio | Quantitative vs. Responsible Esg Equity | Quantitative vs. Secured Options Portfolio |
| Aberdeen vs. Dws Global Macro | Aberdeen vs. T Rowe Price | Aberdeen vs. Ab Global Risk | Aberdeen vs. Templeton Global Balanced |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |