Correlation Between Aumake and Computershare
Can any of the company-specific risk be diversified away by investing in both Aumake and Computershare 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 Aumake and Computershare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aumake and Computershare, you can compare the effects of market volatilities on Aumake and Computershare 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 Aumake with a short position of Computershare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aumake and Computershare.
Diversification Opportunities for Aumake and Computershare
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Aumake and Computershare is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Aumake and Computershare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Computershare and Aumake 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 Aumake are associated (or correlated) with Computershare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Computershare has no effect on the direction of Aumake i.e., Aumake and Computershare go up and down completely randomly.
Pair Corralation between Aumake and Computershare
Assuming the 90 days trading horizon Aumake is expected to generate 2.11 times less return on investment than Computershare. In addition to that, Aumake is 7.34 times more volatile than Computershare. It trades about 0.01 of its total potential returns per unit of risk. Computershare is currently generating about 0.15 per unit of volatility. If you would invest 2,773 in Computershare on September 12, 2024 and sell it today you would earn a total of 428.00 from holding Computershare or generate 15.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aumake vs. Computershare
Performance |
| Timeline |
| Aumake |
| Computershare |
Aumake and Computershare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aumake and Computershare
The main advantage of trading using opposite Aumake and Computershare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aumake position performs unexpectedly, Computershare 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 Computershare will offset losses from the drop in Computershare's long position.| Aumake vs. COAST ENTERTAINMENT HOLDINGS | Aumake vs. MFF Capital Investments | Aumake vs. EROAD | Aumake vs. Skycity Entertainment Group |
| Computershare vs. BKI Investment | Computershare vs. Saferoads Holdings | Computershare vs. Flagship Investments | Computershare vs. Environmental Clean Technologies |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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