Correlation Between Kip McGrath and Walkabout Resources
Can any of the company-specific risk be diversified away by investing in both Kip McGrath and Walkabout Resources 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 Walkabout Resources 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 Walkabout Resources, you can compare the effects of market volatilities on Kip McGrath and Walkabout Resources 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 Walkabout Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kip McGrath and Walkabout Resources.
Diversification Opportunities for Kip McGrath and Walkabout Resources
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kip and Walkabout is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Kip McGrath Education and Walkabout Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Walkabout Resources 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 Walkabout Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Walkabout Resources has no effect on the direction of Kip McGrath i.e., Kip McGrath and Walkabout Resources go up and down completely randomly.
Pair Corralation between Kip McGrath and Walkabout Resources
If you would invest 43.00 in Kip McGrath Education on September 13, 2024 and sell it today you would earn a total of 6.00 from holding Kip McGrath Education or generate 13.95% 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. Walkabout Resources
Performance |
| Timeline |
| Kip McGrath Education |
| Walkabout Resources |
Kip McGrath and Walkabout Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kip McGrath and Walkabout Resources
The main advantage of trading using opposite Kip McGrath and Walkabout Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kip McGrath position performs unexpectedly, Walkabout Resources 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 Walkabout Resources will offset losses from the drop in Walkabout Resources' long position.| Kip McGrath vs. Aneka Tambang Tbk | Kip McGrath vs. Commonwealth Bank of | Kip McGrath vs. Australia and New | Kip McGrath vs. ANZ Group Holdings |
| Walkabout Resources vs. Northern Star Resources | Walkabout Resources vs. Evolution Mining | Walkabout Resources vs. Bluescope Steel | Walkabout Resources vs. Sandfire Resources NL |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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