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
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Corsair and INSURANCE is 0.51. 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 generate 3.4 times more return on investment than INSURANCE AUST. However, Corsair Gaming is 3.4 times more volatile than INSURANCE AUST GRP. It trades about 0.13 of its potential returns per unit of risk. INSURANCE AUST GRP is currently generating about 0.38 per unit of risk. If you would invest 605.00 in Corsair Gaming on September 1, 2024 and sell it today you would earn a total of 84.00 from holding Corsair Gaming or generate 13.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | 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. SEIKO EPSON PADR | Corsair Gaming vs. Superior Plus Corp | Corsair Gaming vs. NMI Holdings | Corsair Gaming vs. Origin Agritech |
| INSURANCE AUST vs. SIVERS SEMICONDUCTORS AB | INSURANCE AUST vs. Darden Restaurants | INSURANCE AUST vs. Reliance Steel Aluminum | INSURANCE AUST vs. Q2M Managementberatung AG |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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