Correlation Between AiMedia Technologies and Charter Hall
Can any of the company-specific risk be diversified away by investing in both AiMedia Technologies and Charter Hall 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 Charter Hall into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AiMedia Technologies and Charter Hall Retail, you can compare the effects of market volatilities on AiMedia Technologies and Charter Hall 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 Charter Hall. Check out your portfolio center. Please also check ongoing floating volatility patterns of AiMedia Technologies and Charter Hall.
Diversification Opportunities for AiMedia Technologies and Charter Hall
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between AiMedia and Charter is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding AiMedia Technologies and Charter Hall Retail in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Charter Hall Retail 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 Charter Hall. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Charter Hall Retail has no effect on the direction of AiMedia Technologies i.e., AiMedia Technologies and Charter Hall go up and down completely randomly.
Pair Corralation between AiMedia Technologies and Charter Hall
Assuming the 90 days trading horizon AiMedia Technologies is expected to generate 3.14 times more return on investment than Charter Hall. However, AiMedia Technologies is 3.14 times more volatile than Charter Hall Retail. It trades about 0.06 of its potential returns per unit of risk. Charter Hall Retail is currently generating about 0.01 per unit of risk. If you would invest 33.00 in AiMedia Technologies on September 3, 2024 and sell it today you would earn a total of 46.00 from holding AiMedia Technologies or generate 139.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AiMedia Technologies vs. Charter Hall Retail
Performance |
| Timeline |
| AiMedia Technologies |
| Charter Hall Retail |
AiMedia Technologies and Charter Hall Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AiMedia Technologies and Charter Hall
The main advantage of trading using opposite AiMedia Technologies and Charter Hall positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AiMedia Technologies position performs unexpectedly, Charter Hall 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 Charter Hall will offset losses from the drop in Charter Hall's long position.| AiMedia Technologies vs. Encounter Resources | AiMedia Technologies vs. Tlou Energy | AiMedia Technologies vs. Superior Resources | AiMedia Technologies vs. Peel Mining |
| Charter Hall vs. GDI Property Group | Charter Hall vs. Champion Iron | Charter Hall vs. iShares Global Healthcare | Charter Hall vs. Peel Mining |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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