Correlation Between Global Data and Auswide Bank
Can any of the company-specific risk be diversified away by investing in both Global Data 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 Global Data and Auswide Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Data Centre and Auswide Bank, you can compare the effects of market volatilities on Global Data 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 Global Data with a short position of Auswide Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Data and Auswide Bank.
Diversification Opportunities for Global Data and Auswide Bank
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Global and Auswide is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Global Data Centre and Auswide Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Auswide Bank and Global Data 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 Global Data Centre 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 Global Data i.e., Global Data and Auswide Bank go up and down completely randomly.
Pair Corralation between Global Data and Auswide Bank
If you would invest 440.00 in Auswide Bank on September 24, 2024 and sell it today you would earn a total of 33.00 from holding Auswide Bank or generate 7.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Global Data Centre vs. Auswide Bank
Performance |
| Timeline |
| Global Data Centre |
| Auswide Bank |
Global Data and Auswide Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Data and Auswide Bank
The main advantage of trading using opposite Global Data and Auswide Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Data 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.| Global Data vs. Aneka Tambang Tbk | Global Data vs. Macquarie Group | Global Data vs. Macquarie Group Ltd | Global Data vs. Challenger |
| Auswide Bank vs. Macquarie Group | Auswide Bank vs. Rio Tinto | Auswide Bank vs. CSL | Auswide Bank vs. Commonwealth Bank of |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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