Correlation Between Beston Global and CSL
Can any of the company-specific risk be diversified away by investing in both Beston Global and CSL 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 Beston Global and CSL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Beston Global Food and CSL, you can compare the effects of market volatilities on Beston Global and CSL 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 Beston Global with a short position of CSL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beston Global and CSL.
Diversification Opportunities for Beston Global and CSL
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Beston and CSL is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Beston Global Food and CSL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSL and Beston Global 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 Beston Global Food are associated (or correlated) with CSL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSL has no effect on the direction of Beston Global i.e., Beston Global and CSL go up and down completely randomly.
Pair Corralation between Beston Global and CSL
Assuming the 90 days trading horizon Beston Global Food is expected to generate 9.85 times more return on investment than CSL. However, Beston Global is 9.85 times more volatile than CSL. It trades about 0.01 of its potential returns per unit of risk. CSL is currently generating about 0.01 per unit of risk. If you would invest 2.50 in Beston Global Food on September 15, 2024 and sell it today you would lose (2.20) from holding Beston Global Food or give up 88.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beston Global Food vs. CSL
Performance |
| Timeline |
| Beston Global Food |
| CSL |
Beston Global and CSL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beston Global and CSL
The main advantage of trading using opposite Beston Global and CSL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beston Global position performs unexpectedly, CSL 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 CSL will offset losses from the drop in CSL's long position.| Beston Global vs. Microequities Asset Management | Beston Global vs. Hudson Investment Group | Beston Global vs. Australian United Investment | Beston Global vs. IDP Education |
| CSL vs. Dicker Data | CSL vs. Hudson Investment Group | CSL vs. Carlton Investments | CSL vs. K2 Asset Management |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |