Correlation Between Bank of Queensland and GO2 People
Can any of the company-specific risk be diversified away by investing in both Bank of Queensland and GO2 People 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 Bank of Queensland and GO2 People into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank of Queensland and GO2 People, you can compare the effects of market volatilities on Bank of Queensland and GO2 People 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 Bank of Queensland with a short position of GO2 People. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of Queensland and GO2 People.
Diversification Opportunities for Bank of Queensland and GO2 People
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and GO2 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Queensland and GO2 People in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GO2 People and Bank of Queensland 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 Bank of Queensland are associated (or correlated) with GO2 People. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GO2 People has no effect on the direction of Bank of Queensland i.e., Bank of Queensland and GO2 People go up and down completely randomly.
Pair Corralation between Bank of Queensland and GO2 People
If you would invest 10,015 in Bank of Queensland on September 3, 2024 and sell it today you would earn a total of 312.00 from holding Bank of Queensland or generate 3.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of Queensland vs. GO2 People
Performance |
| Timeline |
| Bank of Queensland |
| GO2 People |
Bank of Queensland and GO2 People Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of Queensland and GO2 People
The main advantage of trading using opposite Bank of Queensland and GO2 People positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of Queensland position performs unexpectedly, GO2 People 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 GO2 People will offset losses from the drop in GO2 People's long position.| Bank of Queensland vs. Champion Iron | Bank of Queensland vs. iShares Global Healthcare | Bank of Queensland vs. Ridley | Bank of Queensland vs. Peel Mining |
| GO2 People vs. MetalsGrove Mining | GO2 People vs. Ora Banda Mining | GO2 People vs. Macquarie Technology Group | GO2 People vs. Galena Mining |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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