Correlation Between INKON Life and Australian Oilseeds
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By analyzing existing cross correlation between INKON Life Technology and Australian Oilseeds Holdings, you can compare the effects of market volatilities on INKON Life and Australian Oilseeds 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 INKON Life with a short position of Australian Oilseeds. Check out your portfolio center. Please also check ongoing floating volatility patterns of INKON Life and Australian Oilseeds.
Diversification Opportunities for INKON Life and Australian Oilseeds
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between INKON and Australian is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding INKON Life Technology and Australian Oilseeds Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Australian Oilseeds and INKON Life 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 INKON Life Technology are associated (or correlated) with Australian Oilseeds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Australian Oilseeds has no effect on the direction of INKON Life i.e., INKON Life and Australian Oilseeds go up and down completely randomly.
Pair Corralation between INKON Life and Australian Oilseeds
Assuming the 90 days trading horizon INKON Life Technology is expected to generate 0.54 times more return on investment than Australian Oilseeds. However, INKON Life Technology is 1.86 times less risky than Australian Oilseeds. It trades about 0.01 of its potential returns per unit of risk. Australian Oilseeds Holdings is currently generating about -0.06 per unit of risk. If you would invest 1,109 in INKON Life Technology on September 2, 2024 and sell it today you would lose (106.00) from holding INKON Life Technology or give up 9.56% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 96.37% |
Values | Daily Returns |
INKON Life Technology vs. Australian Oilseeds Holdings
Performance |
Timeline |
INKON Life Technology |
Australian Oilseeds |
INKON Life and Australian Oilseeds Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with INKON Life and Australian Oilseeds
The main advantage of trading using opposite INKON Life and Australian Oilseeds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INKON Life position performs unexpectedly, Australian Oilseeds 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 Australian Oilseeds will offset losses from the drop in Australian Oilseeds' long position.INKON Life vs. Agricultural Bank of | INKON Life vs. Industrial and Commercial | INKON Life vs. Bank of China | INKON Life vs. China Construction Bank |
Australian Oilseeds vs. Cimpress NV | Australian Oilseeds vs. Boston Omaha Corp | Australian Oilseeds vs. Xponential Fitness | Australian Oilseeds vs. WPP PLC ADR |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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