Correlation Between Corsair Gaming and INSURANCE AUST
Can any of the company-specific risk be diversified away by investing in both Corsair Gaming and INSURANCE AUST 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 Corsair Gaming and INSURANCE AUST into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Corsair Gaming and INSURANCE AUST GRP, you can compare the effects of market volatilities on Corsair Gaming and INSURANCE AUST 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 Corsair Gaming with a short position of INSURANCE AUST. Check out your portfolio center. Please also check ongoing floating volatility patterns of Corsair Gaming and INSURANCE AUST.
Diversification Opportunities for Corsair Gaming and INSURANCE AUST
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Corsair and INSURANCE is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Corsair Gaming and INSURANCE AUST GRP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INSURANCE AUST GRP and Corsair Gaming 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 Corsair Gaming are associated (or correlated) with INSURANCE AUST. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INSURANCE AUST GRP has no effect on the direction of Corsair Gaming i.e., Corsair Gaming and INSURANCE AUST go up and down completely randomly.
Pair Corralation between Corsair Gaming and INSURANCE AUST
Assuming the 90 days horizon Corsair Gaming is expected to under-perform the INSURANCE AUST. In addition to that, Corsair Gaming is 1.96 times more volatile than INSURANCE AUST GRP. It trades about -0.02 of its total potential returns per unit of risk. INSURANCE AUST GRP is currently generating about 0.06 per unit of volatility. If you would invest 279.00 in INSURANCE AUST GRP on December 24, 2024 and sell it today you would earn a total of 155.00 from holding INSURANCE AUST GRP or generate 55.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Corsair Gaming vs. INSURANCE AUST GRP
Performance |
| Timeline |
| Corsair Gaming |
| INSURANCE AUST GRP |
Corsair Gaming and INSURANCE AUST Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Corsair Gaming and INSURANCE AUST
The main advantage of trading using opposite Corsair Gaming and INSURANCE AUST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Corsair Gaming position performs unexpectedly, INSURANCE AUST 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 INSURANCE AUST will offset losses from the drop in INSURANCE AUST's long position.| Corsair Gaming vs. Firan Technology Group | Corsair Gaming vs. AAC TECHNOLOGHLDGADR | Corsair Gaming vs. G III Apparel Group | Corsair Gaming vs. Algonquin Power Utilities |
| INSURANCE AUST vs. CORNISH METALS INC | INSURANCE AUST vs. East Africa Metals | INSURANCE AUST vs. GRIFFIN MINING LTD | INSURANCE AUST vs. Stag Industrial |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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