Correlation Between Centaurus Metals and Growthpoint Properties
Can any of the company-specific risk be diversified away by investing in both Centaurus Metals and Growthpoint Properties 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 Centaurus Metals and Growthpoint Properties into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Centaurus Metals and Growthpoint Properties Australia, you can compare the effects of market volatilities on Centaurus Metals and Growthpoint Properties 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 Centaurus Metals with a short position of Growthpoint Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of Centaurus Metals and Growthpoint Properties.
Diversification Opportunities for Centaurus Metals and Growthpoint Properties
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Centaurus and Growthpoint is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Centaurus Metals and Growthpoint Properties Austral in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Growthpoint Properties and Centaurus Metals 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 Centaurus Metals are associated (or correlated) with Growthpoint Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Growthpoint Properties has no effect on the direction of Centaurus Metals i.e., Centaurus Metals and Growthpoint Properties go up and down completely randomly.
Pair Corralation between Centaurus Metals and Growthpoint Properties
Assuming the 90 days trading horizon Centaurus Metals is expected to generate 3.35 times more return on investment than Growthpoint Properties. However, Centaurus Metals is 3.35 times more volatile than Growthpoint Properties Australia. It trades about 0.02 of its potential returns per unit of risk. Growthpoint Properties Australia is currently generating about 0.06 per unit of risk. If you would invest 44.00 in Centaurus Metals on September 13, 2024 and sell it today you would lose (2.00) from holding Centaurus Metals or give up 4.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.22% |
| Values | Daily Returns |
Centaurus Metals vs. Growthpoint Properties Austral
Performance |
| Timeline |
| Centaurus Metals |
| Growthpoint Properties |
Centaurus Metals and Growthpoint Properties Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Centaurus Metals and Growthpoint Properties
The main advantage of trading using opposite Centaurus Metals and Growthpoint Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Centaurus Metals position performs unexpectedly, Growthpoint Properties 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 Growthpoint Properties will offset losses from the drop in Growthpoint Properties' long position.| Centaurus Metals vs. Macquarie Technology Group | Centaurus Metals vs. WiseTech Global Limited | Centaurus Metals vs. RLF AgTech | Centaurus Metals vs. Kip McGrath Education |
| Growthpoint Properties vs. Scentre Group | Growthpoint Properties vs. Vicinity Centres Re | Growthpoint Properties vs. Charter Hall Retail | Growthpoint Properties vs. Cromwell Property Group |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Global Correlations Find global opportunities by holding instruments from different markets |