Correlation Between ANDREW PELLER and Caseys General
Can any of the company-specific risk be diversified away by investing in both ANDREW PELLER and Caseys General 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 ANDREW PELLER and Caseys General into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ANDREW PELLER LTD and Caseys General Stores, you can compare the effects of market volatilities on ANDREW PELLER and Caseys General 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 ANDREW PELLER with a short position of Caseys General. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANDREW PELLER and Caseys General.
Diversification Opportunities for ANDREW PELLER and Caseys General
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between ANDREW and Caseys is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding ANDREW PELLER LTD and Caseys General Stores in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caseys General Stores and ANDREW PELLER 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 ANDREW PELLER LTD are associated (or correlated) with Caseys General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caseys General Stores has no effect on the direction of ANDREW PELLER i.e., ANDREW PELLER and Caseys General go up and down completely randomly.
Pair Corralation between ANDREW PELLER and Caseys General
Assuming the 90 days horizon ANDREW PELLER LTD is expected to under-perform the Caseys General. In addition to that, ANDREW PELLER is 1.61 times more volatile than Caseys General Stores. It trades about -0.01 of its total potential returns per unit of risk. Caseys General Stores is currently generating about 0.02 per unit of volatility. If you would invest 39,200 in Caseys General Stores on September 13, 2024 and sell it today you would earn a total of 200.00 from holding Caseys General Stores or generate 0.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ANDREW PELLER LTD vs. Caseys General Stores
Performance |
| Timeline |
| ANDREW PELLER LTD |
| Caseys General Stores |
ANDREW PELLER and Caseys General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANDREW PELLER and Caseys General
The main advantage of trading using opposite ANDREW PELLER and Caseys General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANDREW PELLER position performs unexpectedly, Caseys General 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 Caseys General will offset losses from the drop in Caseys General's long position.| ANDREW PELLER vs. Astral Foods Limited | ANDREW PELLER vs. USWE SPORTS AB | ANDREW PELLER vs. SCIENCE IN SPORT | ANDREW PELLER vs. JD SPORTS FASH |
| Caseys General vs. Apple Inc | Caseys General vs. Apple Inc | Caseys General vs. Apple Inc | Caseys General vs. Apple Inc |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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