Correlation Between Navigator Global and Qantas Airways
Can any of the company-specific risk be diversified away by investing in both Navigator Global and Qantas Airways 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 Navigator Global and Qantas Airways into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Navigator Global Investments and Qantas Airways, you can compare the effects of market volatilities on Navigator Global and Qantas Airways 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 Navigator Global with a short position of Qantas Airways. Check out your portfolio center. Please also check ongoing floating volatility patterns of Navigator Global and Qantas Airways.
Diversification Opportunities for Navigator Global and Qantas Airways
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Navigator and Qantas is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Navigator Global Investments and Qantas Airways in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qantas Airways and Navigator Global 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 Navigator Global Investments are associated (or correlated) with Qantas Airways. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qantas Airways has no effect on the direction of Navigator Global i.e., Navigator Global and Qantas Airways go up and down completely randomly.
Pair Corralation between Navigator Global and Qantas Airways
Assuming the 90 days trading horizon Navigator Global Investments is expected to under-perform the Qantas Airways. In addition to that, Navigator Global is 1.78 times more volatile than Qantas Airways. It trades about -0.12 of its total potential returns per unit of risk. Qantas Airways is currently generating about 0.12 per unit of volatility. If you would invest 908.00 in Qantas Airways on November 4, 2024 and sell it today you would earn a total of 34.00 from holding Qantas Airways or generate 3.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Navigator Global Investments vs. Qantas Airways
Performance |
| Timeline |
| Navigator Global Inv |
| Qantas Airways |
Navigator Global and Qantas Airways Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Navigator Global and Qantas Airways
The main advantage of trading using opposite Navigator Global and Qantas Airways positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Navigator Global position performs unexpectedly, Qantas Airways 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 Qantas Airways will offset losses from the drop in Qantas Airways' long position.| Navigator Global vs. Cleanaway Waste Management | Navigator Global vs. Centrex Metals | Navigator Global vs. Autosports Group | Navigator Global vs. K2 Asset Management |
| Qantas Airways vs. Autosports Group | Qantas Airways vs. Seven West Media | Qantas Airways vs. ARN Media Limited | Qantas Airways vs. FireFly 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |