Correlation Between Boss Energy and Actinogen Medical
Can any of the company-specific risk be diversified away by investing in both Boss Energy and Actinogen Medical 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 Boss Energy and Actinogen Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boss Energy Limited and Actinogen Medical, you can compare the effects of market volatilities on Boss Energy and Actinogen Medical 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 Boss Energy with a short position of Actinogen Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boss Energy and Actinogen Medical.
Diversification Opportunities for Boss Energy and Actinogen Medical
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Boss and Actinogen is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Boss Energy Limited and Actinogen Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Actinogen Medical and Boss Energy 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 Boss Energy Limited are associated (or correlated) with Actinogen Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Actinogen Medical has no effect on the direction of Boss Energy i.e., Boss Energy and Actinogen Medical go up and down completely randomly.
Pair Corralation between Boss Energy and Actinogen Medical
Assuming the 90 days trading horizon Boss Energy is expected to generate 5.0 times less return on investment than Actinogen Medical. But when comparing it to its historical volatility, Boss Energy Limited is 2.58 times less risky than Actinogen Medical. It trades about 0.01 of its potential returns per unit of risk. Actinogen Medical is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 3.94 in Actinogen Medical on August 28, 2024 and sell it today you would lose (1.44) from holding Actinogen Medical or give up 36.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.72% |
| Values | Daily Returns |
Boss Energy Limited vs. Actinogen Medical
Performance |
| Timeline |
| Boss Energy Limited |
| Actinogen Medical |
Boss Energy and Actinogen Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boss Energy and Actinogen Medical
The main advantage of trading using opposite Boss Energy and Actinogen Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boss Energy position performs unexpectedly, Actinogen Medical 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 Actinogen Medical will offset losses from the drop in Actinogen Medical's long position.| Boss Energy vs. Northern Star Resources | Boss Energy vs. Evolution Mining | Boss Energy vs. Bluescope Steel | Boss Energy vs. Sandfire Resources NL |
| Actinogen Medical vs. Aneka Tambang Tbk | Actinogen Medical vs. Rio Tinto | Actinogen Medical vs. BHP Group Limited | Actinogen Medical vs. Block Inc |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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