Correlation Between Australia and COG Financial
Can any of the company-specific risk be diversified away by investing in both Australia and COG Financial 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 Australia and COG Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Australia and New and COG Financial Services, you can compare the effects of market volatilities on Australia and COG Financial 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 Australia with a short position of COG Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Australia and COG Financial.
Diversification Opportunities for Australia and COG Financial
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Australia and COG is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Australia and New and COG Financial Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COG Financial Services and Australia 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 Australia and New are associated (or correlated) with COG Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COG Financial Services has no effect on the direction of Australia i.e., Australia and COG Financial go up and down completely randomly.
Pair Corralation between Australia and COG Financial
Assuming the 90 days trading horizon Australia and New is expected to generate 0.52 times more return on investment than COG Financial. However, Australia and New is 1.91 times less risky than COG Financial. It trades about 0.3 of its potential returns per unit of risk. COG Financial Services is currently generating about -0.13 per unit of risk. If you would invest 2,884 in Australia and New on November 7, 2024 and sell it today you would earn a total of 178.00 from holding Australia and New or generate 6.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Australia and New vs. COG Financial Services
Performance |
| Timeline |
| Australia and New |
| COG Financial Services |
Australia and COG Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Australia and COG Financial
The main advantage of trading using opposite Australia and COG Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Australia position performs unexpectedly, COG Financial 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 COG Financial will offset losses from the drop in COG Financial's long position.| Australia vs. Charter Hall Education | Australia vs. Auctus Alternative Investments | Australia vs. Mayfield Childcare | Australia vs. Argo Investments |
| COG Financial vs. Home Consortium | COG Financial vs. WiseTech Global Limited | COG Financial vs. Zoom2u Technologies | COG Financial vs. Complii FinTech Solutions |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Stocks Directory Find actively traded stocks across global markets | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |