Correlation Between Autosports and Clime Investment
Can any of the company-specific risk be diversified away by investing in both Autosports and Clime Investment 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 Clime Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Autosports Group and Clime Investment Management, you can compare the effects of market volatilities on Autosports and Clime Investment 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 Clime Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Autosports and Clime Investment.
Diversification Opportunities for Autosports and Clime Investment
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Autosports and Clime is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Autosports Group and Clime Investment Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clime Investment Man 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 Clime Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clime Investment Man has no effect on the direction of Autosports i.e., Autosports and Clime Investment go up and down completely randomly.
Pair Corralation between Autosports and Clime Investment
If you would invest 173.00 in Autosports Group on October 21, 2024 and sell it today you would earn a total of 2.00 from holding Autosports Group or generate 1.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Autosports Group vs. Clime Investment Management
Performance |
| Timeline |
| Autosports Group |
| Clime Investment Man |
Autosports and Clime Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Autosports and Clime Investment
The main advantage of trading using opposite Autosports and Clime Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Autosports position performs unexpectedly, Clime Investment 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 Clime Investment will offset losses from the drop in Clime Investment's long position.| Autosports vs. K2 Asset Management | Autosports vs. Kip McGrath Education | Autosports vs. Argo Investments | Autosports vs. Navigator Global Investments |
| Clime Investment vs. Autosports Group | Clime Investment vs. TPG Telecom | Clime Investment vs. Land Homes Group | Clime Investment vs. Centaurus Metals |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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