Correlation Between Auswide Bank and Aspire Mining
Can any of the company-specific risk be diversified away by investing in both Auswide Bank and Aspire Mining 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 Auswide Bank and Aspire Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Auswide Bank and Aspire Mining, you can compare the effects of market volatilities on Auswide Bank and Aspire Mining 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 Auswide Bank with a short position of Aspire Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Auswide Bank and Aspire Mining.
Diversification Opportunities for Auswide Bank and Aspire Mining
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Auswide and Aspire is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Auswide Bank and Aspire Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aspire Mining and Auswide Bank 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 Auswide Bank are associated (or correlated) with Aspire Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aspire Mining has no effect on the direction of Auswide Bank i.e., Auswide Bank and Aspire Mining go up and down completely randomly.
Pair Corralation between Auswide Bank and Aspire Mining
Assuming the 90 days trading horizon Auswide Bank is expected to generate 0.57 times more return on investment than Aspire Mining. However, Auswide Bank is 1.74 times less risky than Aspire Mining. It trades about 0.32 of its potential returns per unit of risk. Aspire Mining is currently generating about -0.11 per unit of risk. If you would invest 407.00 in Auswide Bank on October 11, 2024 and sell it today you would earn a total of 68.00 from holding Auswide Bank or generate 16.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Auswide Bank vs. Aspire Mining
Performance |
| Timeline |
| Auswide Bank |
| Aspire Mining |
Auswide Bank and Aspire Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Auswide Bank and Aspire Mining
The main advantage of trading using opposite Auswide Bank and Aspire Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Auswide Bank position performs unexpectedly, Aspire Mining 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 Aspire Mining will offset losses from the drop in Aspire Mining's long position.| Auswide Bank vs. Zoom2u Technologies | Auswide Bank vs. Premier Investments | Auswide Bank vs. Regal Investment | Auswide Bank vs. Hotel Property Investments |
| Aspire Mining vs. Argo Investments | Aspire Mining vs. Mirrabooka Investments | Aspire Mining vs. A1 Investments Resources | Aspire Mining vs. Australian Unity Office |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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