Correlation Between Goodman and Argosy Property
Can any of the company-specific risk be diversified away by investing in both Goodman and Argosy Property 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 Goodman and Argosy Property into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goodman Group and Argosy Property Limited, you can compare the effects of market volatilities on Goodman and Argosy Property 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 Goodman with a short position of Argosy Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goodman and Argosy Property.
Diversification Opportunities for Goodman and Argosy Property
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Goodman and Argosy is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Goodman Group and Argosy Property Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Argosy Property and Goodman 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 Goodman Group are associated (or correlated) with Argosy Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Argosy Property has no effect on the direction of Goodman i.e., Goodman and Argosy Property go up and down completely randomly.
Pair Corralation between Goodman and Argosy Property
Assuming the 90 days horizon Goodman Group is expected to generate 11.47 times more return on investment than Argosy Property. However, Goodman is 11.47 times more volatile than Argosy Property Limited. It trades about 0.04 of its potential returns per unit of risk. Argosy Property Limited is currently generating about 0.15 per unit of risk. If you would invest 2,063 in Goodman Group on November 3, 2024 and sell it today you would earn a total of 209.00 from holding Goodman Group or generate 10.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 96.88% |
| Values | Daily Returns |
Goodman Group vs. Argosy Property Limited
Performance |
| Timeline |
| Goodman Group |
| Argosy Property |
Goodman and Argosy Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goodman and Argosy Property
The main advantage of trading using opposite Goodman and Argosy Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goodman position performs unexpectedly, Argosy Property 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 Argosy Property will offset losses from the drop in Argosy Property's long position.| Goodman vs. Comstock Holding Companies | Goodman vs. St Joe Company | Goodman vs. Stratus Properties | Goodman vs. Mitsui Fudosan Co |
| Argosy Property vs. Barings BDC | Argosy Property vs. Gerdau SA ADR | Argosy Property vs. Tianjin Capital Environmental | Argosy Property vs. Insteel Industries |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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