Correlation Between SPASX Dividend and Westpac Banking
Can any of the company-specific risk be diversified away by investing in both SPASX Dividend and Westpac Banking 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 Westpac Banking 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 Westpac Banking, you can compare the effects of market volatilities on SPASX Dividend and Westpac Banking 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 Westpac Banking. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPASX Dividend and Westpac Banking.
Diversification Opportunities for SPASX Dividend and Westpac Banking
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SPASX and Westpac is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SPASX Dividend Opportunities and Westpac Banking in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Westpac Banking 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 Westpac Banking. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Westpac Banking has no effect on the direction of SPASX Dividend i.e., SPASX Dividend and Westpac Banking go up and down completely randomly.
Pair Corralation between SPASX Dividend and Westpac Banking
Assuming the 90 days trading horizon SPASX Dividend Opportunities is expected to generate 3.23 times more return on investment than Westpac Banking. However, SPASX Dividend is 3.23 times more volatile than Westpac Banking. It trades about 0.03 of its potential returns per unit of risk. Westpac Banking is currently generating about 0.04 per unit of risk. If you would invest 152,700 in SPASX Dividend Opportunities on August 29, 2024 and sell it today you would earn a total of 15,420 from holding SPASX Dividend Opportunities or generate 10.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
SPASX Dividend Opportunities vs. Westpac Banking
Performance |
| Timeline |
SPASX Dividend and Westpac Banking Volatility Contrast
Predicted Return Density |
| Returns |
SPASX Dividend Opportunities
Pair trading matchups for SPASX Dividend
Westpac Banking
Pair trading matchups for Westpac Banking
Pair Trading with SPASX Dividend and Westpac Banking
The main advantage of trading using opposite SPASX Dividend and Westpac Banking positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPASX Dividend position performs unexpectedly, Westpac Banking 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 Westpac Banking will offset losses from the drop in Westpac Banking's long position.| SPASX Dividend vs. Clime Investment Management | SPASX Dividend vs. Garda Diversified Ppty | SPASX Dividend vs. Genetic Technologies | SPASX Dividend vs. Neurotech International |
| Westpac Banking vs. Advanced Braking Technology | Westpac Banking vs. Talisman Mining | Westpac Banking vs. Regal Funds Management | Westpac Banking vs. Charter Hall Retail |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |