Correlation Between SPASX Dividend and AiMedia Technologies
Can any of the company-specific risk be diversified away by investing in both SPASX Dividend and AiMedia Technologies 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 SPASX Dividend and AiMedia Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPASX Dividend Opportunities and AiMedia Technologies, you can compare the effects of market volatilities on SPASX Dividend and AiMedia Technologies 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 SPASX Dividend with a short position of AiMedia Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPASX Dividend and AiMedia Technologies.
Diversification Opportunities for SPASX Dividend and AiMedia Technologies
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between SPASX and AiMedia is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding SPASX Dividend Opportunities and AiMedia Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AiMedia Technologies and SPASX Dividend 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 SPASX Dividend Opportunities are associated (or correlated) with AiMedia Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AiMedia Technologies has no effect on the direction of SPASX Dividend i.e., SPASX Dividend and AiMedia Technologies go up and down completely randomly.
Pair Corralation between SPASX Dividend and AiMedia Technologies
Assuming the 90 days trading horizon SPASX Dividend Opportunities is expected to generate 0.13 times more return on investment than AiMedia Technologies. However, SPASX Dividend Opportunities is 7.59 times less risky than AiMedia Technologies. It trades about 0.05 of its potential returns per unit of risk. AiMedia Technologies is currently generating about -0.14 per unit of risk. If you would invest 167,020 in SPASX Dividend Opportunities on August 29, 2024 and sell it today you would earn a total of 1,100 from holding SPASX Dividend Opportunities or generate 0.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPASX Dividend Opportunities vs. AiMedia Technologies
Performance |
| Timeline |
SPASX Dividend and AiMedia Technologies Volatility Contrast
Predicted Return Density |
| Returns |
SPASX Dividend Opportunities
Pair trading matchups for SPASX Dividend
AiMedia Technologies
Pair trading matchups for AiMedia Technologies
Pair Trading with SPASX Dividend and AiMedia Technologies
The main advantage of trading using opposite SPASX Dividend and AiMedia Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPASX Dividend position performs unexpectedly, AiMedia Technologies 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 AiMedia Technologies will offset losses from the drop in AiMedia Technologies' long position.| SPASX Dividend vs. Clime Investment Management | SPASX Dividend vs. Garda Diversified Ppty | SPASX Dividend vs. Genetic Technologies | SPASX Dividend vs. Neurotech International |
| AiMedia Technologies vs. PVW Resources | AiMedia Technologies vs. Woolworths | AiMedia Technologies vs. Wesfarmers | AiMedia Technologies vs. Coles Group |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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