Correlation Between Autosports and Anson Resources
Can any of the company-specific risk be diversified away by investing in both Autosports and Anson Resources 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 Autosports and Anson Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Autosports Group and Anson Resources, you can compare the effects of market volatilities on Autosports and Anson Resources 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 Autosports with a short position of Anson Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Autosports and Anson Resources.
Diversification Opportunities for Autosports and Anson Resources
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Autosports and Anson is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Autosports Group and Anson Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anson Resources and Autosports 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 Autosports Group are associated (or correlated) with Anson Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anson Resources has no effect on the direction of Autosports i.e., Autosports and Anson Resources go up and down completely randomly.
Pair Corralation between Autosports and Anson Resources
Assuming the 90 days trading horizon Autosports Group is expected to generate 0.31 times more return on investment than Anson Resources. However, Autosports Group is 3.22 times less risky than Anson Resources. It trades about -0.01 of its potential returns per unit of risk. Anson Resources is currently generating about -0.02 per unit of risk. If you would invest 219.00 in Autosports Group on August 26, 2024 and sell it today you would lose (19.00) from holding Autosports Group or give up 8.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Autosports Group vs. Anson Resources
Performance |
| Timeline |
| Autosports Group |
| Anson Resources |
Autosports and Anson Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Autosports and Anson Resources
The main advantage of trading using opposite Autosports and Anson Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Autosports position performs unexpectedly, Anson Resources 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 Anson Resources will offset losses from the drop in Anson Resources' long position.| Autosports vs. Aneka Tambang Tbk | Autosports vs. Macquarie Group | Autosports vs. Macquarie Group Ltd | Autosports vs. Challenger |
| Anson Resources vs. Autosports Group | Anson Resources vs. Champion Iron | Anson Resources vs. Black Rock Mining | Anson Resources vs. Aussie Broadband |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |