Correlation Between ABACUS STORAGE and Credit Corp
Can any of the company-specific risk be diversified away by investing in both ABACUS STORAGE and Credit Corp 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 ABACUS STORAGE and Credit Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ABACUS STORAGE KING and Credit Corp Group, you can compare the effects of market volatilities on ABACUS STORAGE and Credit Corp 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 ABACUS STORAGE with a short position of Credit Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of ABACUS STORAGE and Credit Corp.
Diversification Opportunities for ABACUS STORAGE and Credit Corp
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ABACUS and Credit is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding ABACUS STORAGE KING and Credit Corp Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Credit Corp Group and ABACUS STORAGE 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 ABACUS STORAGE KING are associated (or correlated) with Credit Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Credit Corp Group has no effect on the direction of ABACUS STORAGE i.e., ABACUS STORAGE and Credit Corp go up and down completely randomly.
Pair Corralation between ABACUS STORAGE and Credit Corp
Assuming the 90 days trading horizon ABACUS STORAGE KING is expected to under-perform the Credit Corp. But the stock apears to be less risky and, when comparing its historical volatility, ABACUS STORAGE KING is 1.54 times less risky than Credit Corp. The stock trades about -0.06 of its potential returns per unit of risk. The Credit Corp Group is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,717 in Credit Corp Group on September 2, 2024 and sell it today you would earn a total of 58.00 from holding Credit Corp Group or generate 3.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ABACUS STORAGE KING vs. Credit Corp Group
Performance |
| Timeline |
| ABACUS STORAGE KING |
| Credit Corp Group |
ABACUS STORAGE and Credit Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ABACUS STORAGE and Credit Corp
The main advantage of trading using opposite ABACUS STORAGE and Credit Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ABACUS STORAGE position performs unexpectedly, Credit Corp 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 Credit Corp will offset losses from the drop in Credit Corp's long position.| ABACUS STORAGE vs. Westpac Banking | ABACUS STORAGE vs. Odyssey Energy | ABACUS STORAGE vs. Imricor Medical Systems | ABACUS STORAGE vs. Midway |
| Credit Corp vs. Kip McGrath Education | Credit Corp vs. Australian Unity Office | Credit Corp vs. Super Retail Group | Credit Corp vs. Home Consortium |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |