Correlation Between Group 6 and Auswide Bank
Can any of the company-specific risk be diversified away by investing in both Group 6 and Auswide Bank 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 Group 6 and Auswide Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Group 6 Metals and Auswide Bank, you can compare the effects of market volatilities on Group 6 and Auswide Bank 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 Group 6 with a short position of Auswide Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Group 6 and Auswide Bank.
Diversification Opportunities for Group 6 and Auswide Bank
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Group and Auswide is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Group 6 Metals and Auswide Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Auswide Bank and Group 6 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 Group 6 Metals are associated (or correlated) with Auswide Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Auswide Bank has no effect on the direction of Group 6 i.e., Group 6 and Auswide Bank go up and down completely randomly.
Pair Corralation between Group 6 and Auswide Bank
Assuming the 90 days trading horizon Group 6 Metals is expected to under-perform the Auswide Bank. In addition to that, Group 6 is 3.83 times more volatile than Auswide Bank. It trades about -0.04 of its total potential returns per unit of risk. Auswide Bank is currently generating about 0.0 per unit of volatility. If you would invest 516.00 in Auswide Bank on October 13, 2024 and sell it today you would lose (39.00) from holding Auswide Bank or give up 7.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Group 6 Metals vs. Auswide Bank
Performance |
| Timeline |
| Group 6 Metals |
| Auswide Bank |
Group 6 and Auswide Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Group 6 and Auswide Bank
The main advantage of trading using opposite Group 6 and Auswide Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Group 6 position performs unexpectedly, Auswide Bank 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 Auswide Bank will offset losses from the drop in Auswide Bank's long position.| Group 6 vs. Northern Star Resources | Group 6 vs. Evolution Mining | Group 6 vs. Bluescope Steel | Group 6 vs. De Grey Mining |
| Auswide Bank vs. Centrex Metals | Auswide Bank vs. Macquarie Technology Group | Auswide Bank vs. Aeon Metals | Auswide Bank vs. Group 6 Metals |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |