Correlation Between Finexia Financial and Suncorp Group
Can any of the company-specific risk be diversified away by investing in both Finexia Financial and Suncorp Group 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 Finexia Financial and Suncorp Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Finexia Financial Group and Suncorp Group Ltd, you can compare the effects of market volatilities on Finexia Financial and Suncorp Group 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 Finexia Financial with a short position of Suncorp Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Finexia Financial and Suncorp Group.
Diversification Opportunities for Finexia Financial and Suncorp Group
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Finexia and Suncorp is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Finexia Financial Group and Suncorp Group Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suncorp Group and Finexia Financial 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 Finexia Financial Group are associated (or correlated) with Suncorp Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suncorp Group has no effect on the direction of Finexia Financial i.e., Finexia Financial and Suncorp Group go up and down completely randomly.
Pair Corralation between Finexia Financial and Suncorp Group
Assuming the 90 days trading horizon Finexia Financial Group is expected to generate 14.63 times more return on investment than Suncorp Group. However, Finexia Financial is 14.63 times more volatile than Suncorp Group Ltd. It trades about 0.05 of its potential returns per unit of risk. Suncorp Group Ltd is currently generating about 0.04 per unit of risk. If you would invest 20.00 in Finexia Financial Group on September 12, 2024 and sell it today you would earn a total of 12.00 from holding Finexia Financial Group or generate 60.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Finexia Financial Group vs. Suncorp Group Ltd
Performance |
| Timeline |
| Finexia Financial |
| Suncorp Group |
Finexia Financial and Suncorp Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Finexia Financial and Suncorp Group
The main advantage of trading using opposite Finexia Financial and Suncorp Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Finexia Financial position performs unexpectedly, Suncorp Group 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 Suncorp Group will offset losses from the drop in Suncorp Group's long position.| Finexia Financial vs. Aneka Tambang Tbk | Finexia Financial vs. Commonwealth Bank | Finexia Financial vs. BHP Group Limited | Finexia Financial vs. Rio Tinto |
| Suncorp Group vs. Finexia Financial Group | Suncorp Group vs. Step One Clothing | Suncorp Group vs. Perpetual Credit Income | Suncorp Group vs. Kkr Credit Income |
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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