Correlation Between Auswide Bank and Coronado Global
Can any of the company-specific risk be diversified away by investing in both Auswide Bank and Coronado Global 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 Coronado Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Auswide Bank and Coronado Global Resources, you can compare the effects of market volatilities on Auswide Bank and Coronado Global 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 Coronado Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Auswide Bank and Coronado Global.
Diversification Opportunities for Auswide Bank and Coronado Global
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Auswide and Coronado is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Auswide Bank and Coronado Global Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coronado Global Resources 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 Coronado Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coronado Global Resources has no effect on the direction of Auswide Bank i.e., Auswide Bank and Coronado Global go up and down completely randomly.
Pair Corralation between Auswide Bank and Coronado Global
Assuming the 90 days trading horizon Auswide Bank is expected to generate 0.68 times more return on investment than Coronado Global. However, Auswide Bank is 1.46 times less risky than Coronado Global. It trades about 0.08 of its potential returns per unit of risk. Coronado Global Resources is currently generating about -0.12 per unit of risk. If you would invest 403.00 in Auswide Bank on October 18, 2024 and sell it today you would earn a total of 78.00 from holding Auswide Bank or generate 19.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Auswide Bank vs. Coronado Global Resources
Performance |
| Timeline |
| Auswide Bank |
| Coronado Global Resources |
Auswide Bank and Coronado Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Auswide Bank and Coronado Global
The main advantage of trading using opposite Auswide Bank and Coronado Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Auswide Bank position performs unexpectedly, Coronado Global 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 Coronado Global will offset losses from the drop in Coronado Global's long position.| Auswide Bank vs. Farm Pride Foods | Auswide Bank vs. Sky Metals | Auswide Bank vs. Aurelia Metals | Auswide Bank vs. Mayfield Childcare |
| Coronado Global vs. Qbe Insurance Group | Coronado Global vs. Latitude Financial Services | Coronado Global vs. Hotel Property Investments | Coronado Global vs. Auswide Bank |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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