Correlation Between Auswide Bank and Premier Investments
Can any of the company-specific risk be diversified away by investing in both Auswide Bank and Premier Investments 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 Premier Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Auswide Bank and Premier Investments, you can compare the effects of market volatilities on Auswide Bank and Premier Investments 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 Premier Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Auswide Bank and Premier Investments.
Diversification Opportunities for Auswide Bank and Premier Investments
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Auswide and Premier is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Auswide Bank and Premier Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Premier Investments 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 Premier Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Premier Investments has no effect on the direction of Auswide Bank i.e., Auswide Bank and Premier Investments go up and down completely randomly.
Pair Corralation between Auswide Bank and Premier Investments
Assuming the 90 days trading horizon Auswide Bank is expected to under-perform the Premier Investments. But the stock apears to be less risky and, when comparing its historical volatility, Auswide Bank is 1.3 times less risky than Premier Investments. The stock trades about 0.0 of its potential returns per unit of risk. The Premier Investments is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 2,525 in Premier Investments on October 28, 2024 and sell it today you would earn a total of 337.00 from holding Premier Investments or generate 13.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Auswide Bank vs. Premier Investments
Performance |
| Timeline |
| Auswide Bank |
| Premier Investments |
Auswide Bank and Premier Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Auswide Bank and Premier Investments
The main advantage of trading using opposite Auswide Bank and Premier Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Auswide Bank position performs unexpectedly, Premier Investments 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 Premier Investments will offset losses from the drop in Premier Investments' long position.| Auswide Bank vs. National Storage REIT | Auswide Bank vs. Viva Leisure | Auswide Bank vs. Sky Metals | Auswide Bank vs. Stelar Metals |
| Premier Investments vs. Sports Entertainment Group | Premier Investments vs. Kneomedia | Premier Investments vs. Iron Road | Premier Investments vs. Nufarm Finance NZ |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |