Correlation Between Peel Mining and Home Consortium
Can any of the company-specific risk be diversified away by investing in both Peel Mining and Home Consortium 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 Peel Mining and Home Consortium into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Peel Mining and Home Consortium, you can compare the effects of market volatilities on Peel Mining and Home Consortium 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 Peel Mining with a short position of Home Consortium. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peel Mining and Home Consortium.
Diversification Opportunities for Peel Mining and Home Consortium
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Peel and Home is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Peel Mining and Home Consortium in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Home Consortium and Peel Mining 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 Peel Mining are associated (or correlated) with Home Consortium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Home Consortium has no effect on the direction of Peel Mining i.e., Peel Mining and Home Consortium go up and down completely randomly.
Pair Corralation between Peel Mining and Home Consortium
Assuming the 90 days trading horizon Peel Mining is expected to generate 3.65 times less return on investment than Home Consortium. In addition to that, Peel Mining is 2.31 times more volatile than Home Consortium. It trades about 0.01 of its total potential returns per unit of risk. Home Consortium is currently generating about 0.11 per unit of volatility. If you would invest 441.00 in Home Consortium on September 4, 2024 and sell it today you would earn a total of 805.00 from holding Home Consortium or generate 182.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Peel Mining vs. Home Consortium
Performance |
| Timeline |
| Peel Mining |
| Home Consortium |
Peel Mining and Home Consortium Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peel Mining and Home Consortium
The main advantage of trading using opposite Peel Mining and Home Consortium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peel Mining position performs unexpectedly, Home Consortium 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 Home Consortium will offset losses from the drop in Home Consortium's long position.| Peel Mining vs. Northern Star Resources | Peel Mining vs. Evolution Mining | Peel Mining vs. Bluescope Steel | Peel Mining vs. Sandfire Resources NL |
| Home Consortium vs. Scentre Group | Home Consortium vs. Vicinity Centres Re | Home Consortium vs. Charter Hall Retail | Home Consortium vs. Carindale Property Trust |
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
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Commodity Directory Find actively traded commodities issued by global exchanges |