Correlation Between Auswide Bank and Autosports
Can any of the company-specific risk be diversified away by investing in both Auswide Bank and Autosports 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 Autosports into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Auswide Bank and Autosports Group, you can compare the effects of market volatilities on Auswide Bank and Autosports 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 Autosports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Auswide Bank and Autosports.
Diversification Opportunities for Auswide Bank and Autosports
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Auswide and Autosports is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Auswide Bank and Autosports Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Autosports Group 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 Autosports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Autosports Group has no effect on the direction of Auswide Bank i.e., Auswide Bank and Autosports go up and down completely randomly.
Pair Corralation between Auswide Bank and Autosports
Assuming the 90 days trading horizon Auswide Bank is expected to generate 1.03 times more return on investment than Autosports. However, Auswide Bank is 1.03 times more volatile than Autosports Group. It trades about 0.08 of its potential returns per unit of risk. Autosports Group is currently generating about -0.07 per unit of risk. If you would invest 413.00 in Auswide Bank on August 29, 2024 and sell it today you would earn a total of 35.00 from holding Auswide Bank or generate 8.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Auswide Bank vs. Autosports Group
Performance |
| Timeline |
| Auswide Bank |
| Autosports Group |
Auswide Bank and Autosports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Auswide Bank and Autosports
The main advantage of trading using opposite Auswide Bank and Autosports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Auswide Bank position performs unexpectedly, Autosports 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 Autosports will offset losses from the drop in Autosports' long position.| Auswide Bank vs. Champion Iron | Auswide Bank vs. Ridley | Auswide Bank vs. Peel Mining | Auswide Bank vs. Australian Dairy Farms |
| Autosports vs. Summit Resources Limited | Autosports vs. Champion Iron | Autosports vs. Ridley | Autosports vs. Peel Mining |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |