Correlation Between Actinogen Medical and Southern Cross
Can any of the company-specific risk be diversified away by investing in both Actinogen Medical and Southern Cross 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 Southern Cross into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Actinogen Medical and Southern Cross Media, you can compare the effects of market volatilities on Actinogen Medical and Southern Cross 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 Southern Cross. Check out your portfolio center. Please also check ongoing floating volatility patterns of Actinogen Medical and Southern Cross.
Diversification Opportunities for Actinogen Medical and Southern Cross
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Actinogen and Southern is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Actinogen Medical and Southern Cross Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Southern Cross Media 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 Southern Cross. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Southern Cross Media has no effect on the direction of Actinogen Medical i.e., Actinogen Medical and Southern Cross go up and down completely randomly.
Pair Corralation between Actinogen Medical and Southern Cross
Assuming the 90 days trading horizon Actinogen Medical is expected to generate 2.65 times more return on investment than Southern Cross. However, Actinogen Medical is 2.65 times more volatile than Southern Cross Media. It trades about 0.01 of its potential returns per unit of risk. Southern Cross Media is currently generating about -0.02 per unit of risk. If you would invest 8.55 in Actinogen Medical on November 5, 2024 and sell it today you would lose (5.85) from holding Actinogen Medical or give up 68.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Actinogen Medical vs. Southern Cross Media
Performance |
| Timeline |
| Actinogen Medical |
| Southern Cross Media |
Actinogen Medical and Southern Cross Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Actinogen Medical and Southern Cross
The main advantage of trading using opposite Actinogen Medical and Southern Cross positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Actinogen Medical position performs unexpectedly, Southern Cross 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 Southern Cross will offset losses from the drop in Southern Cross' long position.| Actinogen Medical vs. Hotel Property Investments | Actinogen Medical vs. Dynamic Drill And | Actinogen Medical vs. Nufarm | Actinogen Medical vs. Insignia Financial |
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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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