Correlation Between Caseys General and ADRIATIC METALS
Can any of the company-specific risk be diversified away by investing in both Caseys General and ADRIATIC METALS 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 Caseys General and ADRIATIC METALS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Caseys General Stores and ADRIATIC METALS LS 013355, you can compare the effects of market volatilities on Caseys General and ADRIATIC METALS 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 Caseys General with a short position of ADRIATIC METALS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Caseys General and ADRIATIC METALS.
Diversification Opportunities for Caseys General and ADRIATIC METALS
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Caseys and ADRIATIC is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Caseys General Stores and ADRIATIC METALS LS 013355 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ADRIATIC METALS LS and Caseys General 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 Caseys General Stores are associated (or correlated) with ADRIATIC METALS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ADRIATIC METALS LS has no effect on the direction of Caseys General i.e., Caseys General and ADRIATIC METALS go up and down completely randomly.
Pair Corralation between Caseys General and ADRIATIC METALS
Assuming the 90 days trading horizon Caseys General Stores is expected to generate 0.68 times more return on investment than ADRIATIC METALS. However, Caseys General Stores is 1.47 times less risky than ADRIATIC METALS. It trades about 0.21 of its potential returns per unit of risk. ADRIATIC METALS LS 013355 is currently generating about 0.04 per unit of risk. If you would invest 36,150 in Caseys General Stores on September 1, 2024 and sell it today you would earn a total of 3,450 from holding Caseys General Stores or generate 9.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Caseys General Stores vs. ADRIATIC METALS LS 013355
Performance |
| Timeline |
| Caseys General Stores |
| ADRIATIC METALS LS |
Caseys General and ADRIATIC METALS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Caseys General and ADRIATIC METALS
The main advantage of trading using opposite Caseys General and ADRIATIC METALS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Caseys General position performs unexpectedly, ADRIATIC METALS 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 ADRIATIC METALS will offset losses from the drop in ADRIATIC METALS's long position.| Caseys General vs. Apple Inc | Caseys General vs. Apple Inc | Caseys General vs. Apple Inc | Caseys General vs. Apple Inc |
| ADRIATIC METALS vs. PUBLIC STORAGE PRFO | ADRIATIC METALS vs. BE Semiconductor Industries | ADRIATIC METALS vs. Datang International Power | ADRIATIC METALS vs. Elmos Semiconductor SE |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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