Correlation Between Global Health and Auking Mining
Can any of the company-specific risk be diversified away by investing in both Global Health and Auking Mining 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 Health and Auking Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Health and Auking Mining, you can compare the effects of market volatilities on Global Health and Auking Mining 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 Health with a short position of Auking Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Health and Auking Mining.
Diversification Opportunities for Global Health and Auking Mining
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Global and Auking is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Global Health and Auking Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Auking Mining and Global Health 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 Health are associated (or correlated) with Auking Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Auking Mining has no effect on the direction of Global Health i.e., Global Health and Auking Mining go up and down completely randomly.
Pair Corralation between Global Health and Auking Mining
Assuming the 90 days trading horizon Global Health is expected to generate 0.44 times more return on investment than Auking Mining. However, Global Health is 2.29 times less risky than Auking Mining. It trades about 0.02 of its potential returns per unit of risk. Auking Mining is currently generating about -0.16 per unit of risk. If you would invest 14.00 in Global Health on November 3, 2024 and sell it today you would earn a total of 0.00 from holding Global Health or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global Health vs. Auking Mining
Performance |
| Timeline |
| Global Health |
| Auking Mining |
Global Health and Auking Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Health and Auking Mining
The main advantage of trading using opposite Global Health and Auking Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Health position performs unexpectedly, Auking Mining 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 Auking Mining will offset losses from the drop in Auking Mining's long position.| Global Health vs. Aneka Tambang Tbk | Global Health vs. BHP Group Limited | Global Health vs. Rio Tinto | Global Health vs. Macquarie Group Ltd |
| Auking Mining vs. Super Retail Group | Auking Mining vs. Dexus Convenience Retail | Auking Mining vs. Charter Hall Retail | Auking Mining vs. Advanced Braking Technology |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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