Correlation Between Abrdn Emerging and ACNB

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

By analyzing existing cross correlation between Abrdn Emerging Markets and ACNB Corporation, you can compare the effects of market volatilities on Abrdn Emerging and ACNB 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 Abrdn Emerging with a short position of ACNB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Abrdn Emerging and ACNB.

Diversification Opportunities for Abrdn Emerging and ACNB

0.22

Correlation Coefficient

Abrdn Emerging  ACNB

Modest diversification

The 3 months correlation between Abrdn and ACNB is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Abrdn Emerging Markets and ACNB Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ACNB and Abrdn Emerging 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 Abrdn Emerging Markets are associated (or correlated) with ACNB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ACNB has no effect on the direction of Abrdn Emerging i.e., Abrdn Emerging and ACNB go up and down completely randomly.

Pair Corralation between Abrdn Emerging and ACNB

Considering the 90-day investment horizon Abrdn Emerging Markets is expected to generate 0.68 times more return on investment than ACNB. However, Abrdn Emerging Markets is 1.46 times less risky than ACNB. It trades about 0.16 of its potential returns per unit of risk. ACNB Corporation is currently generating about 0.03 per unit of risk. If you would invest  604.00  in Abrdn Emerging Markets on July 23, 2025 and sell it today you would earn a total of  64.00  from holding Abrdn Emerging Markets or generate 10.6% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.44%
Values	Daily Returns

Abrdn Emerging Markets  vs.  ACNB Corp.

Abrdn Emerging Markets

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Abrdn Emerging Markets are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. Despite nearly weak technical and fundamental indicators, Abrdn Emerging may actually be approaching a critical reversion point that can send shares even higher in November 2025.

ACNB

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in ACNB Corporation are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, ACNB is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Abrdn Emerging and ACNB

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

The idea behind Abrdn Emerging Markets and ACNB Corporation 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.

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 Transaction History module to view history of all your transactions and understand their impact on performance.