Correlation Between Accent Resources and GO2 People
Can any of the company-specific risk be diversified away by investing in both Accent Resources and GO2 People 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 GO2 People 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 GO2 People, you can compare the effects of market volatilities on Accent Resources and GO2 People 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 GO2 People. Check out your portfolio center. Please also check ongoing floating volatility patterns of Accent Resources and GO2 People.
Diversification Opportunities for Accent Resources and GO2 People
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Accent and GO2 is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Accent Resources NL and GO2 People in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GO2 People 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 GO2 People. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GO2 People has no effect on the direction of Accent Resources i.e., Accent Resources and GO2 People go up and down completely randomly.
Pair Corralation between Accent Resources and GO2 People
If you would invest 67.00 in GO2 People on August 29, 2024 and sell it today you would earn a total of 0.00 from holding GO2 People or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 97.67% |
| Values | Daily Returns |
Accent Resources NL vs. GO2 People
Performance |
| Timeline |
| Accent Resources |
| GO2 People |
Accent Resources and GO2 People Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Accent Resources and GO2 People
The main advantage of trading using opposite Accent Resources and GO2 People positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Accent Resources position performs unexpectedly, GO2 People 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 GO2 People will offset losses from the drop in GO2 People's long position.| Accent Resources vs. Qbe Insurance Group | Accent Resources vs. Epsilon Healthcare | Accent Resources vs. Oneview Healthcare PLC | Accent Resources vs. Oceania Healthcare |
| GO2 People vs. Embark Education Group | GO2 People vs. Kip McGrath Education | GO2 People vs. COAST ENTERTAINMENT HOLDINGS | GO2 People vs. Skycity Entertainment 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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