Correlation Between INSURANCE AUST and Corsair Gaming
Can any of the company-specific risk be diversified away by investing in both INSURANCE AUST and Corsair Gaming 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 INSURANCE AUST and Corsair Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between INSURANCE AUST GRP and Corsair Gaming, you can compare the effects of market volatilities on INSURANCE AUST and Corsair Gaming 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 INSURANCE AUST with a short position of Corsair Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of INSURANCE AUST and Corsair Gaming.
Diversification Opportunities for INSURANCE AUST and Corsair Gaming
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between INSURANCE and Corsair is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding INSURANCE AUST GRP and Corsair Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Corsair Gaming and INSURANCE AUST 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 INSURANCE AUST GRP are associated (or correlated) with Corsair Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Corsair Gaming has no effect on the direction of INSURANCE AUST i.e., INSURANCE AUST and Corsair Gaming go up and down completely randomly.
Pair Corralation between INSURANCE AUST and Corsair Gaming
Assuming the 90 days trading horizon INSURANCE AUST is expected to generate 4.36 times less return on investment than Corsair Gaming. But when comparing it to its historical volatility, INSURANCE AUST GRP is 2.59 times less risky than Corsair Gaming. It trades about 0.19 of its potential returns per unit of risk. Corsair Gaming is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 741.00 in Corsair Gaming on November 9, 2024 and sell it today you would earn a total of 170.00 from holding Corsair Gaming or generate 22.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
INSURANCE AUST GRP vs. Corsair Gaming
Performance |
| Timeline |
| INSURANCE AUST GRP |
| Corsair Gaming |
INSURANCE AUST and Corsair Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INSURANCE AUST and Corsair Gaming
The main advantage of trading using opposite INSURANCE AUST and Corsair Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INSURANCE AUST position performs unexpectedly, Corsair Gaming 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 Corsair Gaming will offset losses from the drop in Corsair Gaming's long position.| INSURANCE AUST vs. UmweltBank AG | INSURANCE AUST vs. Cal Maine Foods | INSURANCE AUST vs. OAKTRSPECLENDNEW | INSURANCE AUST vs. Lifeway Foods |
| Corsair Gaming vs. MAANSHAN IRON H | Corsair Gaming vs. TOMBADOR IRON LTD | Corsair Gaming vs. Veolia Environnement SA | Corsair Gaming vs. CHINA EDUCATION GROUP |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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