Correlation Between Skycity Entertainment and Southern Cross
Can any of the company-specific risk be diversified away by investing in both Skycity Entertainment and Southern Cross 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 Skycity Entertainment and Southern Cross into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Skycity Entertainment Group and Southern Cross Gold, you can compare the effects of market volatilities on Skycity Entertainment and Southern Cross 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 Skycity Entertainment with a short position of Southern Cross. Check out your portfolio center. Please also check ongoing floating volatility patterns of Skycity Entertainment and Southern Cross.
Diversification Opportunities for Skycity Entertainment and Southern Cross
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Skycity and Southern is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Skycity Entertainment Group and Southern Cross Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Southern Cross Gold and Skycity Entertainment 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 Skycity Entertainment Group are associated (or correlated) with Southern Cross. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Southern Cross Gold has no effect on the direction of Skycity Entertainment i.e., Skycity Entertainment and Southern Cross go up and down completely randomly.
Pair Corralation between Skycity Entertainment and Southern Cross
Assuming the 90 days trading horizon Skycity Entertainment Group is expected to generate 0.65 times more return on investment than Southern Cross. However, Skycity Entertainment Group is 1.54 times less risky than Southern Cross. It trades about 0.03 of its potential returns per unit of risk. Southern Cross Gold is currently generating about 0.01 per unit of risk. If you would invest 129.00 in Skycity Entertainment Group on October 20, 2024 and sell it today you would earn a total of 1.00 from holding Skycity Entertainment Group or generate 0.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Skycity Entertainment Group vs. Southern Cross Gold
Performance |
| Timeline |
| Skycity Entertainment |
| Southern Cross Gold |
Skycity Entertainment and Southern Cross Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Skycity Entertainment and Southern Cross
The main advantage of trading using opposite Skycity Entertainment and Southern Cross positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Skycity Entertainment position performs unexpectedly, Southern Cross 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 Southern Cross will offset losses from the drop in Southern Cross' long position.| Skycity Entertainment vs. Viva Leisure | Skycity Entertainment vs. Hutchison Telecommunications | Skycity Entertainment vs. Step One Clothing | Skycity Entertainment vs. Autosports Group |
| Southern Cross vs. Advanced Braking Technology | Southern Cross vs. Skycity Entertainment Group | Southern Cross vs. Nine Entertainment Co | Southern Cross vs. Complii FinTech Solutions |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |