Correlation Between Chatham Rock and Abrdn Asia
Can any of the company-specific risk be diversified away by investing in both Chatham Rock and Abrdn Asia 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 Chatham Rock and Abrdn Asia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chatham Rock Phosphate and abrdn Asia Pacific, you can compare the effects of market volatilities on Chatham Rock and Abrdn Asia 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 Chatham Rock with a short position of Abrdn Asia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chatham Rock and Abrdn Asia.
Diversification Opportunities for Chatham Rock and Abrdn Asia
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Chatham and Abrdn is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Chatham Rock Phosphate and abrdn Asia Pacific in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on abrdn Asia Pacific and Chatham Rock 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 Chatham Rock Phosphate are associated (or correlated) with Abrdn Asia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of abrdn Asia Pacific has no effect on the direction of Chatham Rock i.e., Chatham Rock and Abrdn Asia go up and down completely randomly.
Pair Corralation between Chatham Rock and Abrdn Asia
If you would invest 286.00 in abrdn Asia Pacific on July 20, 2025 and sell it today you would earn a total of 8.00 from holding abrdn Asia Pacific or generate 2.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.59% |
| Values | Daily Returns |
Chatham Rock Phosphate vs. abrdn Asia Pacific
Performance |
| Timeline |
| Chatham Rock Phosphate |
Risk-Adjusted Performance
Weak
Weak | Strong |
| abrdn Asia Pacific |
Chatham Rock and Abrdn Asia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chatham Rock and Abrdn Asia
The main advantage of trading using opposite Chatham Rock and Abrdn Asia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chatham Rock position performs unexpectedly, Abrdn Asia 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 Abrdn Asia will offset losses from the drop in Abrdn Asia's long position.The idea behind Chatham Rock Phosphate and abrdn Asia Pacific pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Abrdn Asia vs. Pender Growth | Abrdn Asia vs. Canso Credit Trust | Abrdn Asia vs. Income Financial Trust | Abrdn Asia vs. Precious Metals And |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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