Correlation Between Retail Food and Insurance Australia
Can any of the company-specific risk be diversified away by investing in both Retail Food and Insurance Australia 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 Retail Food and Insurance Australia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Retail Food Group and Insurance Australia Group, you can compare the effects of market volatilities on Retail Food and Insurance Australia 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 Retail Food with a short position of Insurance Australia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Retail Food and Insurance Australia.
Diversification Opportunities for Retail Food and Insurance Australia
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Retail and Insurance is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Retail Food Group and Insurance Australia Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Insurance Australia and Retail Food 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 Retail Food Group are associated (or correlated) with Insurance Australia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Insurance Australia has no effect on the direction of Retail Food i.e., Retail Food and Insurance Australia go up and down completely randomly.
Pair Corralation between Retail Food and Insurance Australia
If you would invest 6.80 in Retail Food Group on August 29, 2024 and sell it today you would earn a total of 0.50 from holding Retail Food Group or generate 7.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.2% |
| Values | Daily Returns |
Retail Food Group vs. Insurance Australia Group
Performance |
| Timeline |
| Retail Food Group |
| Insurance Australia |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
Retail Food and Insurance Australia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Retail Food and Insurance Australia
The main advantage of trading using opposite Retail Food and Insurance Australia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Retail Food position performs unexpectedly, Insurance Australia 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 Insurance Australia will offset losses from the drop in Insurance Australia's long position.| Retail Food vs. Autosports Group | Retail Food vs. AiMedia Technologies | Retail Food vs. BKI Investment | Retail Food vs. ARN Media Limited |
| Insurance Australia vs. Australian United Investment | Insurance Australia vs. Platinum Asia Investments | Insurance Australia vs. Embark Education Group | Insurance Australia vs. Step One Clothing |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |