Correlation Between Coles and Arc Funds
Can any of the company-specific risk be diversified away by investing in both Coles and Arc Funds 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 Coles and Arc Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coles Group and Arc Funds, you can compare the effects of market volatilities on Coles and Arc Funds 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 Coles with a short position of Arc Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coles and Arc Funds.
Diversification Opportunities for Coles and Arc Funds
Good diversification
The 3 months correlation between Coles and Arc is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Coles Group and Arc Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arc Funds and Coles 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 Coles Group are associated (or correlated) with Arc Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arc Funds has no effect on the direction of Coles i.e., Coles and Arc Funds go up and down completely randomly.
Pair Corralation between Coles and Arc Funds
If you would invest 0.00 in Coles Group on October 25, 2024 and sell it today you would earn a total of 0.00 from holding Coles Group or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.2% |
| Values | Daily Returns |
Coles Group vs. Arc Funds
Performance |
| Timeline |
| Coles Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| Arc Funds |
Coles and Arc Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coles and Arc Funds
The main advantage of trading using opposite Coles and Arc Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coles position performs unexpectedly, Arc Funds 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 Arc Funds will offset losses from the drop in Arc Funds' long position.| Coles vs. Centuria Industrial Reit | Coles vs. Nufarm Finance NZ | Coles vs. Kip McGrath Education | Coles vs. Centaurus Metals |
| Arc Funds vs. Ras Technology Holdings | Arc Funds vs. Southern Hemisphere Mining | Arc Funds vs. Sports Entertainment Group | Arc Funds vs. Computershare |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |