Correlation Between Aberdeen Income and Brookfield Asset
Can any of the company-specific risk be diversified away by investing in both Aberdeen Income and Brookfield Asset 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 Income and Brookfield Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aberdeen Income Credit and Brookfield Asset Management, you can compare the effects of market volatilities on Aberdeen Income and Brookfield Asset 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 Income with a short position of Brookfield Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aberdeen Income and Brookfield Asset.
Diversification Opportunities for Aberdeen Income and Brookfield Asset
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aberdeen and Brookfield is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Aberdeen Income Credit and Brookfield Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brookfield Asset Man and Aberdeen Income 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 Income Credit are associated (or correlated) with Brookfield Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brookfield Asset Man has no effect on the direction of Aberdeen Income i.e., Aberdeen Income and Brookfield Asset go up and down completely randomly.
Pair Corralation between Aberdeen Income and Brookfield Asset
Considering the 90-day investment horizon Aberdeen Income Credit is expected to generate 0.5 times more return on investment than Brookfield Asset. However, Aberdeen Income Credit is 2.0 times less risky than Brookfield Asset. It trades about 0.03 of its potential returns per unit of risk. Brookfield Asset Management is currently generating about 0.0 per unit of risk. If you would invest 553.00 in Aberdeen Income Credit on January 25, 2024 and sell it today you would earn a total of 94.00 from holding Aberdeen Income Credit or generate 17.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aberdeen Income Credit vs. Brookfield Asset Management
Performance |
| Timeline |
| Aberdeen Me Credit |
| Brookfield Asset Man |
Aberdeen Income and Brookfield Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aberdeen Income and Brookfield Asset
The main advantage of trading using opposite Aberdeen Income and Brookfield Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aberdeen Income position performs unexpectedly, Brookfield Asset 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 Brookfield Asset will offset losses from the drop in Brookfield Asset's long position.| Aberdeen Income vs. BlackRock Floating Rate | Aberdeen Income vs. Eaton Vance Senior | Aberdeen Income vs. Apollo Senior Floating | Aberdeen Income vs. Eaton Vance Tax Managed |
| Brookfield Asset vs. KKR Co LP | Brookfield Asset vs. Blackstone Group | Brookfield Asset vs. Apollo Global Management | Brookfield Asset vs. T Rowe Price |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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