Correlation Between Accent Resources and Coles
Can any of the company-specific risk be diversified away by investing in both Accent Resources and Coles 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 Accent Resources and Coles into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Accent Resources NL and Coles Group, you can compare the effects of market volatilities on Accent Resources and Coles 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 Accent Resources with a short position of Coles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Accent Resources and Coles.
Diversification Opportunities for Accent Resources and Coles
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Accent and Coles is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Accent Resources NL and Coles Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coles Group and Accent Resources 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 Accent Resources NL are associated (or correlated) with Coles. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coles Group has no effect on the direction of Accent Resources i.e., Accent Resources and Coles go up and down completely randomly.
Pair Corralation between Accent Resources and Coles
If you would invest 1,816 in Coles Group on September 26, 2024 and sell it today you would earn a total of 64.00 from holding Coles Group or generate 3.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Accent Resources NL vs. Coles Group
Performance |
| Timeline |
| Accent Resources |
| Coles Group |
Accent Resources and Coles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Accent Resources and Coles
The main advantage of trading using opposite Accent Resources and Coles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Accent Resources position performs unexpectedly, Coles 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 Coles will offset losses from the drop in Coles' long position.| Accent Resources vs. Northern Star Resources | Accent Resources vs. Evolution Mining | Accent Resources vs. Bluescope Steel | Accent Resources vs. Aneka Tambang Tbk |
| Coles vs. Accent Resources NL | Coles vs. Hutchison Telecommunications | Coles vs. Energy Resources | Coles vs. GO2 People |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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