Correlation Between Ambertech and Southern Cross
Can any of the company-specific risk be diversified away by investing in both Ambertech 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 Ambertech and Southern Cross into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ambertech and Southern Cross Media, you can compare the effects of market volatilities on Ambertech 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 Ambertech with a short position of Southern Cross. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ambertech and Southern Cross.
Diversification Opportunities for Ambertech and Southern Cross
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ambertech and Southern is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Ambertech 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 Ambertech 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 Ambertech 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 Ambertech i.e., Ambertech and Southern Cross go up and down completely randomly.
Pair Corralation between Ambertech and Southern Cross
Assuming the 90 days trading horizon Ambertech is expected to generate 2.27 times more return on investment than Southern Cross. However, Ambertech is 2.27 times more volatile than Southern Cross Media. It trades about 0.02 of its potential returns per unit of risk. Southern Cross Media is currently generating about -0.03 per unit of risk. If you would invest 16.00 in Ambertech on November 3, 2024 and sell it today you would earn a total of 0.00 from holding Ambertech or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Ambertech vs. Southern Cross Media
Performance |
| Timeline |
| Ambertech |
| Southern Cross Media |
Ambertech and Southern Cross Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ambertech and Southern Cross
The main advantage of trading using opposite Ambertech and Southern Cross positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ambertech 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.| Ambertech vs. Bailador Technology Invest | Ambertech vs. MetalsGrove Mining | Ambertech vs. Sports Entertainment Group | Ambertech vs. Advanced Braking Technology |
| Southern Cross vs. Embark Education Group | Southern Cross vs. Centrex Metals | Southern Cross vs. Stelar Metals | Southern Cross vs. Centuria Industrial Reit |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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