Correlation Between Auswide Bank and Centuria Industrial
Can any of the company-specific risk be diversified away by investing in both Auswide Bank and Centuria Industrial 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 Centuria Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Auswide Bank and Centuria Industrial Reit, you can compare the effects of market volatilities on Auswide Bank and Centuria Industrial 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 Centuria Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Auswide Bank and Centuria Industrial.
Diversification Opportunities for Auswide Bank and Centuria Industrial
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Auswide and Centuria is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Auswide Bank and Centuria Industrial Reit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Centuria Industrial Reit 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 Centuria Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Centuria Industrial Reit has no effect on the direction of Auswide Bank i.e., Auswide Bank and Centuria Industrial go up and down completely randomly.
Pair Corralation between Auswide Bank and Centuria Industrial
Assuming the 90 days trading horizon Auswide Bank is expected to generate 1.94 times more return on investment than Centuria Industrial. However, Auswide Bank is 1.94 times more volatile than Centuria Industrial Reit. It trades about 0.16 of its potential returns per unit of risk. Centuria Industrial Reit is currently generating about 0.03 per unit of risk. If you would invest 446.00 in Auswide Bank on October 17, 2024 and sell it today you would earn a total of 35.00 from holding Auswide Bank or generate 7.85% 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. Centuria Industrial Reit
Performance |
| Timeline |
| Auswide Bank |
| Centuria Industrial Reit |
Auswide Bank and Centuria Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Auswide Bank and Centuria Industrial
The main advantage of trading using opposite Auswide Bank and Centuria Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Auswide Bank position performs unexpectedly, Centuria Industrial 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 Centuria Industrial will offset losses from the drop in Centuria Industrial's long position.| Auswide Bank vs. The Environmental Group | Auswide Bank vs. Djerriwarrh Investments | Auswide Bank vs. Aeris Environmental | Auswide Bank vs. Champion Iron |
| Centuria Industrial vs. Insurance Australia Group | Centuria Industrial vs. Auswide Bank | Centuria Industrial vs. Latitude Financial Services | Centuria Industrial vs. Liberty Financial Group |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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