Correlation Between Aspire Mining and CSL
Can any of the company-specific risk be diversified away by investing in both Aspire Mining and CSL 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 Aspire Mining and CSL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aspire Mining and CSL, you can compare the effects of market volatilities on Aspire Mining and CSL 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 Aspire Mining with a short position of CSL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aspire Mining and CSL.
Diversification Opportunities for Aspire Mining and CSL
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aspire and CSL is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Aspire Mining and CSL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSL and Aspire Mining 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 Aspire Mining are associated (or correlated) with CSL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSL has no effect on the direction of Aspire Mining i.e., Aspire Mining and CSL go up and down completely randomly.
Pair Corralation between Aspire Mining and CSL
Assuming the 90 days trading horizon Aspire Mining is expected to generate 6.32 times more return on investment than CSL. However, Aspire Mining is 6.32 times more volatile than CSL. It trades about 0.09 of its potential returns per unit of risk. CSL is currently generating about 0.02 per unit of risk. If you would invest 7.30 in Aspire Mining on August 28, 2024 and sell it today you would earn a total of 21.70 from holding Aspire Mining or generate 297.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.72% |
| Values | Daily Returns |
Aspire Mining vs. CSL
Performance |
| Timeline |
| Aspire Mining |
| CSL |
Aspire Mining and CSL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aspire Mining and CSL
The main advantage of trading using opposite Aspire Mining and CSL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aspire Mining position performs unexpectedly, CSL 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 CSL will offset losses from the drop in CSL's long position.| Aspire Mining vs. Navigator Global Investments | Aspire Mining vs. Step One Clothing | Aspire Mining vs. Mirrabooka Investments | Aspire Mining vs. Platinum Asset Management |
| CSL vs. Regal Investment | CSL vs. MFF Capital Investments | CSL vs. Mirrabooka Investments | CSL vs. Viva Leisure |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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