Correlation Between METALL ZUG and Abrdn Property

Can any of the company-specific risk be diversified away by investing in both METALL ZUG and Abrdn Property 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 METALL ZUG and Abrdn Property into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between METALL ZUG AG and abrdn Property Income, you can compare the effects of market volatilities on METALL ZUG and Abrdn Property 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 METALL ZUG with a short position of Abrdn Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of METALL ZUG and Abrdn Property.

Diversification Opportunities for METALL ZUG and Abrdn Property

-0.5

Correlation Coefficient

METALL ZUG  Abrdn Property

Very good diversification

The 3 months correlation between METALL and Abrdn is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding METALL ZUG AG and abrdn Property Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on abrdn Property Income and METALL ZUG 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 METALL ZUG AG are associated (or correlated) with Abrdn Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of abrdn Property Income has no effect on the direction of METALL ZUG i.e., METALL ZUG and Abrdn Property go up and down completely randomly.

Pair Corralation between METALL ZUG and Abrdn Property

Assuming the 90 days trading horizon METALL ZUG AG is expected to under-perform the Abrdn Property. But the stock apears to be less risky and, when comparing its historical volatility, METALL ZUG AG is 1.89 times less risky than Abrdn Property. The stock trades about -0.07 of its potential returns per unit of risk. The abrdn Property Income is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  217.00  in abrdn Property Income on April 20, 2025 and sell it today you would earn a total of  314.00  from holding abrdn Property Income or generate 144.7% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	89.8%
Values	Daily Returns

METALL ZUG AG  vs.  abrdn Property Income

METALL ZUG AG

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in METALL ZUG AG are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, METALL ZUG is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

abrdn Property Income

Risk-Adjusted Performance

Very Weak

Over the last 90 days abrdn Property Income has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's technical and fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with METALL ZUG and Abrdn Property

The main advantage of trading using opposite METALL ZUG and Abrdn Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if METALL ZUG position performs unexpectedly, Abrdn Property 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 Property will offset losses from the drop in Abrdn Property's long position.

The idea behind METALL ZUG AG and abrdn Property Income 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.

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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 Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .