Correlation Between Ausquest and BSP Financial
Can any of the company-specific risk be diversified away by investing in both Ausquest and BSP 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 Ausquest and BSP Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ausquest and BSP Financial Group, you can compare the effects of market volatilities on Ausquest and BSP 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 Ausquest with a short position of BSP Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ausquest and BSP Financial.
Diversification Opportunities for Ausquest and BSP Financial
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ausquest and BSP is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Ausquest and BSP Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BSP Financial Group and Ausquest 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 Ausquest are associated (or correlated) with BSP Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BSP Financial Group has no effect on the direction of Ausquest i.e., Ausquest and BSP Financial go up and down completely randomly.
Pair Corralation between Ausquest and BSP Financial
Assuming the 90 days trading horizon Ausquest is expected to generate 25.08 times more return on investment than BSP Financial. However, Ausquest is 25.08 times more volatile than BSP Financial Group. It trades about 0.26 of its potential returns per unit of risk. BSP Financial Group is currently generating about 0.3 per unit of risk. If you would invest 0.80 in Ausquest on November 3, 2024 and sell it today you would earn a total of 2.70 from holding Ausquest or generate 337.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Ausquest vs. BSP Financial Group
Performance |
| Timeline |
| Ausquest |
| BSP Financial Group |
Ausquest and BSP Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ausquest and BSP Financial
The main advantage of trading using opposite Ausquest and BSP Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ausquest position performs unexpectedly, BSP 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 BSP Financial will offset losses from the drop in BSP Financial's long position.| Ausquest vs. Autosports Group | Ausquest vs. Flagship Investments | Ausquest vs. Qbe Insurance Group | Ausquest vs. Sandon Capital Investments |
| BSP Financial vs. Perseus Mining | BSP Financial vs. Sky Metals | BSP Financial vs. Group 6 Metals | BSP Financial vs. TPG Telecom |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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