Correlation Between Black Rock and Growthpoint Properties
Can any of the company-specific risk be diversified away by investing in both Black Rock and Growthpoint Properties 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 Black Rock and Growthpoint Properties into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Black Rock Mining and Growthpoint Properties Australia, you can compare the effects of market volatilities on Black Rock and Growthpoint Properties 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 Black Rock with a short position of Growthpoint Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of Black Rock and Growthpoint Properties.
Diversification Opportunities for Black Rock and Growthpoint Properties
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Black and Growthpoint is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Black Rock Mining and Growthpoint Properties Austral in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Growthpoint Properties and Black Rock 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 Black Rock Mining are associated (or correlated) with Growthpoint Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Growthpoint Properties has no effect on the direction of Black Rock i.e., Black Rock and Growthpoint Properties go up and down completely randomly.
Pair Corralation between Black Rock and Growthpoint Properties
Assuming the 90 days trading horizon Black Rock Mining is expected to under-perform the Growthpoint Properties. In addition to that, Black Rock is 2.57 times more volatile than Growthpoint Properties Australia. It trades about -0.05 of its total potential returns per unit of risk. Growthpoint Properties Australia is currently generating about 0.0 per unit of volatility. If you would invest 262.00 in Growthpoint Properties Australia on September 12, 2024 and sell it today you would lose (19.00) from holding Growthpoint Properties Australia or give up 7.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.72% |
| Values | Daily Returns |
Black Rock Mining vs. Growthpoint Properties Austral
Performance |
| Timeline |
| Black Rock Mining |
| Growthpoint Properties |
Black Rock and Growthpoint Properties Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Black Rock and Growthpoint Properties
The main advantage of trading using opposite Black Rock and Growthpoint Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Black Rock position performs unexpectedly, Growthpoint Properties 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 Growthpoint Properties will offset losses from the drop in Growthpoint Properties' long position.| Black Rock vs. Northern Star Resources | Black Rock vs. Evolution Mining | Black Rock vs. Bluescope Steel | Black Rock vs. Sandfire Resources NL |
| Growthpoint Properties vs. Centaurus Metals | Growthpoint Properties vs. Falcon Metals | Growthpoint Properties vs. Black Rock Mining | Growthpoint Properties vs. Truscott Mining Corp |
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 CEOs Directory module to screen CEOs from public companies around the world.
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