Correlation Between Autosports and Group 6
Can any of the company-specific risk be diversified away by investing in both Autosports and Group 6 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 Group 6 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Autosports Group and Group 6 Metals, you can compare the effects of market volatilities on Autosports and Group 6 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 Group 6. Check out your portfolio center. Please also check ongoing floating volatility patterns of Autosports and Group 6.
Diversification Opportunities for Autosports and Group 6
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Autosports and Group is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Autosports Group and Group 6 Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Group 6 Metals 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 Group 6. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Group 6 Metals has no effect on the direction of Autosports i.e., Autosports and Group 6 go up and down completely randomly.
Pair Corralation between Autosports and Group 6
If you would invest 2.50 in Group 6 Metals on November 4, 2024 and sell it today you would earn a total of 0.00 from holding Group 6 Metals or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Autosports Group vs. Group 6 Metals
Performance |
| Timeline |
| Autosports Group |
| Group 6 Metals |
Autosports and Group 6 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Autosports and Group 6
The main advantage of trading using opposite Autosports and Group 6 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Autosports position performs unexpectedly, Group 6 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 Group 6 will offset losses from the drop in Group 6's long position.| Autosports vs. Centrex Metals | Autosports vs. FireFly Metals | Autosports vs. Cosmo Metals | Autosports vs. Champion Iron |
| Group 6 vs. Queste Communications | Group 6 vs. Ras Technology Holdings | Group 6 vs. Ainsworth Game Technology | Group 6 vs. 29Metals |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |