Correlation Between Scentre and Garda Diversified
Can any of the company-specific risk be diversified away by investing in both Scentre and Garda Diversified 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 Scentre and Garda Diversified into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Scentre Group and Garda Diversified Ppty, you can compare the effects of market volatilities on Scentre and Garda Diversified 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 Scentre with a short position of Garda Diversified. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scentre and Garda Diversified.
Diversification Opportunities for Scentre and Garda Diversified
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Scentre and Garda is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Scentre Group and Garda Diversified Ppty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Garda Diversified Ppty and Scentre 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 Scentre Group are associated (or correlated) with Garda Diversified. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Garda Diversified Ppty has no effect on the direction of Scentre i.e., Scentre and Garda Diversified go up and down completely randomly.
Pair Corralation between Scentre and Garda Diversified
Assuming the 90 days trading horizon Scentre Group is expected to generate 0.98 times more return on investment than Garda Diversified. However, Scentre Group is 1.02 times less risky than Garda Diversified. It trades about 0.22 of its potential returns per unit of risk. Garda Diversified Ppty is currently generating about -0.13 per unit of risk. If you would invest 348.00 in Scentre Group on October 23, 2024 and sell it today you would earn a total of 14.00 from holding Scentre Group or generate 4.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Scentre Group vs. Garda Diversified Ppty
Performance |
| Timeline |
| Scentre Group |
| Garda Diversified Ppty |
Scentre and Garda Diversified Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scentre and Garda Diversified
The main advantage of trading using opposite Scentre and Garda Diversified positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scentre position performs unexpectedly, Garda Diversified 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 Garda Diversified will offset losses from the drop in Garda Diversified's long position.| Scentre vs. Event Hospitality and | Scentre vs. Rand Mining | Scentre vs. DMC Mining | Scentre vs. Regis Healthcare |
| Garda Diversified vs. Scentre Group | Garda Diversified vs. Vicinity Centres Re | Garda Diversified vs. Charter Hall Retail | Garda Diversified vs. Cromwell Property 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |