Correlation Between CUE Energy and Bank of Queensland
Can any of the company-specific risk be diversified away by investing in both CUE Energy and Bank of Queensland 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 CUE Energy and Bank of Queensland into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CUE Energy Resources and Bank of Queensland, you can compare the effects of market volatilities on CUE Energy and Bank of Queensland 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 CUE Energy with a short position of Bank of Queensland. Check out your portfolio center. Please also check ongoing floating volatility patterns of CUE Energy and Bank of Queensland.
Diversification Opportunities for CUE Energy and Bank of Queensland
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between CUE and Bank is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding CUE Energy Resources and Bank of Queensland in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of Queensland and CUE Energy 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 CUE Energy Resources are associated (or correlated) with Bank of Queensland. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of Queensland has no effect on the direction of CUE Energy i.e., CUE Energy and Bank of Queensland go up and down completely randomly.
Pair Corralation between CUE Energy and Bank of Queensland
Assuming the 90 days trading horizon CUE Energy Resources is expected to generate 11.17 times more return on investment than Bank of Queensland. However, CUE Energy is 11.17 times more volatile than Bank of Queensland. It trades about 0.05 of its potential returns per unit of risk. Bank of Queensland is currently generating about 0.06 per unit of risk. If you would invest 5.03 in CUE Energy Resources on September 12, 2024 and sell it today you would earn a total of 4.77 from holding CUE Energy Resources or generate 94.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CUE Energy Resources vs. Bank of Queensland
Performance |
| Timeline |
| CUE Energy Resources |
| Bank of Queensland |
CUE Energy and Bank of Queensland Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CUE Energy and Bank of Queensland
The main advantage of trading using opposite CUE Energy and Bank of Queensland positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CUE Energy position performs unexpectedly, Bank of Queensland 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 Bank of Queensland will offset losses from the drop in Bank of Queensland's long position.| CUE Energy vs. Srj Technologies Group | CUE Energy vs. Ainsworth Game Technology | CUE Energy vs. Richmond Vanadium Technology | CUE Energy vs. Ras Technology Holdings |
| Bank of Queensland vs. Premier Investments | Bank of Queensland vs. Aspire Mining | Bank of Queensland vs. Galena Mining | Bank of Queensland vs. Hotel Property Investments |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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