Correlation Between Actinogen Medical and Bank of Queensland
Can any of the company-specific risk be diversified away by investing in both Actinogen Medical and Bank of Queensland 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 Actinogen Medical and Bank of Queensland into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Actinogen Medical and Bank of Queensland, you can compare the effects of market volatilities on Actinogen Medical and Bank of Queensland 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 Actinogen Medical with a short position of Bank of Queensland. Check out your portfolio center. Please also check ongoing floating volatility patterns of Actinogen Medical and Bank of Queensland.
Diversification Opportunities for Actinogen Medical and Bank of Queensland
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Actinogen and Bank is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Actinogen Medical and Bank of Queensland in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of Queensland and Actinogen Medical 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 Actinogen Medical are associated (or correlated) with Bank of Queensland. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of Queensland has no effect on the direction of Actinogen Medical i.e., Actinogen Medical and Bank of Queensland go up and down completely randomly.
Pair Corralation between Actinogen Medical and Bank of Queensland
Assuming the 90 days trading horizon Actinogen Medical is expected to generate 20.46 times more return on investment than Bank of Queensland. However, Actinogen Medical is 20.46 times more volatile than Bank of Queensland. It trades about 0.01 of its potential returns per unit of risk. Bank of Queensland is currently generating about 0.07 per unit of risk. If you would invest 9.03 in Actinogen Medical on October 11, 2024 and sell it today you would lose (6.43) from holding Actinogen Medical or give up 71.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Actinogen Medical vs. Bank of Queensland
Performance |
| Timeline |
| Actinogen Medical |
| Bank of Queensland |
Actinogen Medical and Bank of Queensland Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Actinogen Medical and Bank of Queensland
The main advantage of trading using opposite Actinogen Medical and Bank of Queensland positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Actinogen Medical position performs unexpectedly, Bank of Queensland 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 Bank of Queensland will offset losses from the drop in Bank of Queensland's long position.| Actinogen Medical vs. Pinnacle Investment Management | Actinogen Medical vs. Auctus Alternative Investments | Actinogen Medical vs. Readytech Holdings | Actinogen Medical vs. Thorney Technologies |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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