Correlation Between Bendigo and Genesis Minerals
Can any of the company-specific risk be diversified away by investing in both Bendigo and Genesis Minerals 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 Bendigo and Genesis Minerals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bendigo And Adelaide and Genesis Minerals, you can compare the effects of market volatilities on Bendigo and Genesis Minerals 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 Bendigo with a short position of Genesis Minerals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bendigo and Genesis Minerals.
Diversification Opportunities for Bendigo and Genesis Minerals
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bendigo and Genesis is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Bendigo And Adelaide and Genesis Minerals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genesis Minerals and Bendigo 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 Bendigo And Adelaide are associated (or correlated) with Genesis Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genesis Minerals has no effect on the direction of Bendigo i.e., Bendigo and Genesis Minerals go up and down completely randomly.
Pair Corralation between Bendigo and Genesis Minerals
Assuming the 90 days trading horizon Bendigo And Adelaide is expected to under-perform the Genesis Minerals. But the stock apears to be less risky and, when comparing its historical volatility, Bendigo And Adelaide is 1.19 times less risky than Genesis Minerals. The stock trades about -0.01 of its potential returns per unit of risk. The Genesis Minerals is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 261.00 in Genesis Minerals on October 15, 2024 and sell it today you would earn a total of 11.00 from holding Genesis Minerals or generate 4.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bendigo And Adelaide vs. Genesis Minerals
Performance |
| Timeline |
| Bendigo And Adelaide |
| Genesis Minerals |
Bendigo and Genesis Minerals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bendigo and Genesis Minerals
The main advantage of trading using opposite Bendigo and Genesis Minerals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bendigo position performs unexpectedly, Genesis Minerals 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 Genesis Minerals will offset losses from the drop in Genesis Minerals' long position.| Bendigo vs. Cleanaway Waste Management | Bendigo vs. Southern Cross Media | Bendigo vs. Infomedia | Bendigo vs. Sports Entertainment Group |
| Genesis Minerals vs. Balkan Mining and | Genesis Minerals vs. Galena Mining | Genesis Minerals vs. Insurance Australia Group | Genesis Minerals vs. Autosports 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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