Correlation Between SPASX Dividend and Ashley Services
Can any of the company-specific risk be diversified away by investing in both SPASX Dividend and Ashley Services 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 Ashley Services 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 Ashley Services Group, you can compare the effects of market volatilities on SPASX Dividend and Ashley Services 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 Ashley Services. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPASX Dividend and Ashley Services.
Diversification Opportunities for SPASX Dividend and Ashley Services
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SPASX and Ashley is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding SPASX Dividend Opportunities and Ashley Services Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ashley Services Group 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 Ashley Services. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ashley Services Group has no effect on the direction of SPASX Dividend i.e., SPASX Dividend and Ashley Services go up and down completely randomly.
Pair Corralation between SPASX Dividend and Ashley Services
Assuming the 90 days trading horizon SPASX Dividend is expected to generate 1.78 times less return on investment than Ashley Services. But when comparing it to its historical volatility, SPASX Dividend Opportunities is 10.22 times less risky than Ashley Services. It trades about 0.08 of its potential returns per unit of risk. Ashley Services Group is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 19.00 in Ashley Services Group on September 12, 2024 and sell it today you would lose (1.00) from holding Ashley Services Group or give up 5.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPASX Dividend Opportunities vs. Ashley Services Group
Performance |
| Timeline |
SPASX Dividend and Ashley Services Volatility Contrast
Predicted Return Density |
| Returns |
SPASX Dividend Opportunities
Pair trading matchups for SPASX Dividend
Ashley Services Group
Pair trading matchups for Ashley Services
Pair Trading with SPASX Dividend and Ashley Services
The main advantage of trading using opposite SPASX Dividend and Ashley Services positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPASX Dividend position performs unexpectedly, Ashley Services 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 Ashley Services will offset losses from the drop in Ashley Services' long position.| SPASX Dividend vs. TTG Fintech | SPASX Dividend vs. Hansen Technologies | SPASX Dividend vs. Australian Strategic Materials | SPASX Dividend vs. Genetic Technologies |
| Ashley Services vs. Aussie Broadband | Ashley Services vs. Wt Financial Group | Ashley Services vs. Pioneer Credit | Ashley Services vs. National Australia Bank |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |