Correlation Between Metals Exploration and Abrdn Property

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

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

Diversification Opportunities for Metals Exploration and Abrdn Property

-0.45

Correlation Coefficient

Metals Exploration  Abrdn Property

Very good diversification

The 3 months correlation between Metals and Abrdn is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Metals Exploration Plc 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 Metals Exploration 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 Metals Exploration Plc 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 Metals Exploration i.e., Metals Exploration and Abrdn Property go up and down completely randomly.

Pair Corralation between Metals Exploration and Abrdn Property

Assuming the 90 days trading horizon Metals Exploration Plc is expected to generate 1.48 times more return on investment than Abrdn Property. However, Metals Exploration is 1.48 times more volatile than abrdn Property Income. It trades about 0.24 of its potential returns per unit of risk. abrdn Property Income is currently generating about -0.07 per unit of risk. If you would invest  750.00  in Metals Exploration Plc on April 20, 2025 and sell it today you would earn a total of  530.00  from holding Metals Exploration Plc or generate 70.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.41%
Values	Daily Returns

Metals Exploration Plc  vs.  abrdn Property Income

Metals Exploration Plc

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Metals Exploration Plc are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, Metals Exploration exhibited solid returns over the last few months and may actually be approaching a breakup point.

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 Metals Exploration and Abrdn Property

The main advantage of trading using opposite Metals Exploration and Abrdn Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Metals Exploration 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 Metals Exploration Plc 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.