Correlation Between ABACUS STORAGE and Nuenergy Gas
Can any of the company-specific risk be diversified away by investing in both ABACUS STORAGE and Nuenergy Gas 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 Nuenergy Gas 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 Nuenergy Gas, you can compare the effects of market volatilities on ABACUS STORAGE and Nuenergy Gas 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 Nuenergy Gas. Check out your portfolio center. Please also check ongoing floating volatility patterns of ABACUS STORAGE and Nuenergy Gas.
Diversification Opportunities for ABACUS STORAGE and Nuenergy Gas
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ABACUS and Nuenergy is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding ABACUS STORAGE KING and Nuenergy Gas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuenergy Gas 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 Nuenergy Gas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuenergy Gas has no effect on the direction of ABACUS STORAGE i.e., ABACUS STORAGE and Nuenergy Gas go up and down completely randomly.
Pair Corralation between ABACUS STORAGE and Nuenergy Gas
Assuming the 90 days trading horizon ABACUS STORAGE KING is expected to generate 9.64 times more return on investment than Nuenergy Gas. However, ABACUS STORAGE is 9.64 times more volatile than Nuenergy Gas. It trades about 0.06 of its potential returns per unit of risk. Nuenergy Gas is currently generating about 0.01 per unit of risk. If you would invest 108.00 in ABACUS STORAGE KING on November 1, 2024 and sell it today you would earn a total of 7.00 from holding ABACUS STORAGE KING or generate 6.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
ABACUS STORAGE KING vs. Nuenergy Gas
Performance |
| Timeline |
| ABACUS STORAGE KING |
| Nuenergy Gas |
ABACUS STORAGE and Nuenergy Gas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ABACUS STORAGE and Nuenergy Gas
The main advantage of trading using opposite ABACUS STORAGE and Nuenergy Gas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ABACUS STORAGE position performs unexpectedly, Nuenergy Gas 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 Nuenergy Gas will offset losses from the drop in Nuenergy Gas' long position.| ABACUS STORAGE vs. Truscott Mining Corp | ABACUS STORAGE vs. Treasury Wine Estates | ABACUS STORAGE vs. Homeco Daily Needs | ABACUS STORAGE vs. Black Rock Mining |
| Nuenergy Gas vs. Westpac Banking | Nuenergy Gas vs. ABACUS STORAGE KING | Nuenergy Gas vs. Odyssey Energy | Nuenergy Gas vs. Qantas Airways |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |