Correlation Between Kip McGrath and Mirrabooka Investments
Can any of the company-specific risk be diversified away by investing in both Kip McGrath and Mirrabooka Investments 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 Kip McGrath and Mirrabooka Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kip McGrath Education and Mirrabooka Investments, you can compare the effects of market volatilities on Kip McGrath and Mirrabooka Investments 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 Kip McGrath with a short position of Mirrabooka Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kip McGrath and Mirrabooka Investments.
Diversification Opportunities for Kip McGrath and Mirrabooka Investments
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kip and Mirrabooka is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Kip McGrath Education and Mirrabooka Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mirrabooka Investments and Kip McGrath 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 Kip McGrath Education are associated (or correlated) with Mirrabooka Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mirrabooka Investments has no effect on the direction of Kip McGrath i.e., Kip McGrath and Mirrabooka Investments go up and down completely randomly.
Pair Corralation between Kip McGrath and Mirrabooka Investments
Assuming the 90 days trading horizon Kip McGrath Education is expected to under-perform the Mirrabooka Investments. In addition to that, Kip McGrath is 3.47 times more volatile than Mirrabooka Investments. It trades about -0.01 of its total potential returns per unit of risk. Mirrabooka Investments is currently generating about 0.05 per unit of volatility. If you would invest 265.00 in Mirrabooka Investments on August 28, 2024 and sell it today you would earn a total of 75.00 from holding Mirrabooka Investments or generate 28.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kip McGrath Education vs. Mirrabooka Investments
Performance |
| Timeline |
| Kip McGrath Education |
| Mirrabooka Investments |
Kip McGrath and Mirrabooka Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kip McGrath and Mirrabooka Investments
The main advantage of trading using opposite Kip McGrath and Mirrabooka Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kip McGrath position performs unexpectedly, Mirrabooka Investments 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 Mirrabooka Investments will offset losses from the drop in Mirrabooka Investments' long position.| Kip McGrath vs. Actinogen Medical | Kip McGrath vs. Hutchison Telecommunications | Kip McGrath vs. Hotel Property Investments | Kip McGrath vs. G8 Education |
| Mirrabooka Investments vs. Stelar Metals | Mirrabooka Investments vs. Centaurus Metals | Mirrabooka Investments vs. IDP Education | Mirrabooka Investments vs. Alto 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |