Correlation Between AiMedia Technologies and Commonwealth Bank
Can any of the company-specific risk be diversified away by investing in both AiMedia Technologies and Commonwealth Bank 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 AiMedia Technologies and Commonwealth Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AiMedia Technologies and Commonwealth Bank of, you can compare the effects of market volatilities on AiMedia Technologies and Commonwealth Bank 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 AiMedia Technologies with a short position of Commonwealth Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of AiMedia Technologies and Commonwealth Bank.
Diversification Opportunities for AiMedia Technologies and Commonwealth Bank
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between AiMedia and Commonwealth is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding AiMedia Technologies and Commonwealth Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Commonwealth Bank and AiMedia Technologies 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 AiMedia Technologies are associated (or correlated) with Commonwealth Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Commonwealth Bank has no effect on the direction of AiMedia Technologies i.e., AiMedia Technologies and Commonwealth Bank go up and down completely randomly.
Pair Corralation between AiMedia Technologies and Commonwealth Bank
Assuming the 90 days trading horizon AiMedia Technologies is expected to generate 21.28 times more return on investment than Commonwealth Bank. However, AiMedia Technologies is 21.28 times more volatile than Commonwealth Bank of. It trades about 0.14 of its potential returns per unit of risk. Commonwealth Bank of is currently generating about 0.04 per unit of risk. If you would invest 57.00 in AiMedia Technologies on August 31, 2024 and sell it today you would earn a total of 23.00 from holding AiMedia Technologies or generate 40.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.46% |
| Values | Daily Returns |
AiMedia Technologies vs. Commonwealth Bank of
Performance |
| Timeline |
| AiMedia Technologies |
| Commonwealth Bank |
AiMedia Technologies and Commonwealth Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AiMedia Technologies and Commonwealth Bank
The main advantage of trading using opposite AiMedia Technologies and Commonwealth Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AiMedia Technologies position performs unexpectedly, Commonwealth Bank 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 Commonwealth Bank will offset losses from the drop in Commonwealth Bank's long position.| AiMedia Technologies vs. Aneka Tambang Tbk | AiMedia Technologies vs. Woolworths | AiMedia Technologies vs. Commonwealth Bank | AiMedia Technologies vs. BHP Group Limited |
| Commonwealth Bank vs. Kneomedia | Commonwealth Bank vs. Medical Developments International | Commonwealth Bank vs. Nine Entertainment Co | Commonwealth Bank vs. COAST ENTERTAINMENT HOLDINGS |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |