Correlation Between Carindale Property and Finexia Financial
Can any of the company-specific risk be diversified away by investing in both Carindale Property and Finexia Financial 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 Carindale Property and Finexia Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carindale Property Trust and Finexia Financial Group, you can compare the effects of market volatilities on Carindale Property and Finexia Financial 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 Carindale Property with a short position of Finexia Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carindale Property and Finexia Financial.
Diversification Opportunities for Carindale Property and Finexia Financial
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Carindale and Finexia is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Carindale Property Trust and Finexia Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Finexia Financial and Carindale Property 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 Carindale Property Trust are associated (or correlated) with Finexia Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Finexia Financial has no effect on the direction of Carindale Property i.e., Carindale Property and Finexia Financial go up and down completely randomly.
Pair Corralation between Carindale Property and Finexia Financial
Assuming the 90 days trading horizon Carindale Property Trust is expected to under-perform the Finexia Financial. In addition to that, Carindale Property is 1.13 times more volatile than Finexia Financial Group. It trades about -0.04 of its total potential returns per unit of risk. Finexia Financial Group is currently generating about 0.01 per unit of volatility. If you would invest 28.00 in Finexia Financial Group on November 9, 2024 and sell it today you would earn a total of 0.00 from holding Finexia Financial Group or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carindale Property Trust vs. Finexia Financial Group
Performance |
| Timeline |
| Carindale Property Trust |
| Finexia Financial |
Carindale Property and Finexia Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carindale Property and Finexia Financial
The main advantage of trading using opposite Carindale Property and Finexia Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carindale Property position performs unexpectedly, Finexia Financial 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 Finexia Financial will offset losses from the drop in Finexia Financial's long position.| Carindale Property vs. COG Financial Services | Carindale Property vs. Insurance Australia Group | Carindale Property vs. Kkr Credit Income | Carindale Property vs. Retail Food Group |
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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 Stocks Directory module to find actively traded stocks across global markets.
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