Correlation Between Credit Corp and ABACUS STORAGE
Can any of the company-specific risk be diversified away by investing in both Credit Corp and ABACUS STORAGE 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 Credit Corp and ABACUS STORAGE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Credit Corp Group and ABACUS STORAGE KING, you can compare the effects of market volatilities on Credit Corp and ABACUS STORAGE 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 Credit Corp with a short position of ABACUS STORAGE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Credit Corp and ABACUS STORAGE.
Diversification Opportunities for Credit Corp and ABACUS STORAGE
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Credit and ABACUS is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Credit Corp Group and ABACUS STORAGE KING in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ABACUS STORAGE KING and Credit Corp 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 Credit Corp Group are associated (or correlated) with ABACUS STORAGE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ABACUS STORAGE KING has no effect on the direction of Credit Corp i.e., Credit Corp and ABACUS STORAGE go up and down completely randomly.
Pair Corralation between Credit Corp and ABACUS STORAGE
Assuming the 90 days trading horizon Credit Corp is expected to generate 2.76 times less return on investment than ABACUS STORAGE. In addition to that, Credit Corp is 1.45 times more volatile than ABACUS STORAGE KING. It trades about 0.0 of its total potential returns per unit of risk. ABACUS STORAGE KING is currently generating about 0.01 per unit of volatility. If you would invest 125.00 in ABACUS STORAGE KING on November 28, 2024 and sell it today you would lose (2.00) from holding ABACUS STORAGE KING or give up 1.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 79.96% |
| Values | Daily Returns |
Credit Corp Group vs. ABACUS STORAGE KING
Performance |
| Timeline |
| Credit Corp Group |
| ABACUS STORAGE KING |
Credit Corp and ABACUS STORAGE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Credit Corp and ABACUS STORAGE
The main advantage of trading using opposite Credit Corp and ABACUS STORAGE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Credit Corp position performs unexpectedly, ABACUS STORAGE 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 ABACUS STORAGE will offset losses from the drop in ABACUS STORAGE's long position.| Credit Corp vs. Westpac Banking | Credit Corp vs. TPG Telecom | Credit Corp vs. Computershare | Credit Corp vs. Treasury Wine Estates |
| ABACUS STORAGE vs. Fisher Paykel Healthcare | ABACUS STORAGE vs. Bailador Technology Invest | ABACUS STORAGE vs. Vitura Health Limited | ABACUS STORAGE vs. Austco Healthcare |
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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