Correlation Between Santana Minerals and Bank of Queensland
Can any of the company-specific risk be diversified away by investing in both Santana Minerals and Bank of Queensland 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 Santana Minerals and Bank of Queensland into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Santana Minerals and Bank of Queensland, you can compare the effects of market volatilities on Santana Minerals and Bank of Queensland 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 Santana Minerals with a short position of Bank of Queensland. Check out your portfolio center. Please also check ongoing floating volatility patterns of Santana Minerals and Bank of Queensland.
Diversification Opportunities for Santana Minerals and Bank of Queensland
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Santana and Bank is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Santana Minerals and Bank of Queensland in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of Queensland and Santana Minerals 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 Santana Minerals are associated (or correlated) with Bank of Queensland. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of Queensland has no effect on the direction of Santana Minerals i.e., Santana Minerals and Bank of Queensland go up and down completely randomly.
Pair Corralation between Santana Minerals and Bank of Queensland
Assuming the 90 days trading horizon Santana Minerals is expected to generate 9.86 times more return on investment than Bank of Queensland. However, Santana Minerals is 9.86 times more volatile than Bank of Queensland. It trades about 0.01 of its potential returns per unit of risk. Bank of Queensland is currently generating about 0.04 per unit of risk. If you would invest 49.00 in Santana Minerals on October 28, 2024 and sell it today you would earn a total of 0.00 from holding Santana Minerals or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Santana Minerals vs. Bank of Queensland
Performance |
| Timeline |
| Santana Minerals |
| Bank of Queensland |
Santana Minerals and Bank of Queensland Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Santana Minerals and Bank of Queensland
The main advantage of trading using opposite Santana Minerals and Bank of Queensland positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Santana Minerals position performs unexpectedly, Bank of Queensland 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 Bank of Queensland will offset losses from the drop in Bank of Queensland's long position.| Santana Minerals vs. Dug Technology | Santana Minerals vs. Pinnacle Investment Management | Santana Minerals vs. Ras Technology Holdings | Santana Minerals vs. Bio Gene Technology |
| Bank of Queensland vs. Qbe Insurance Group | Bank of Queensland vs. Medibank Private | Bank of Queensland vs. Saferoads Holdings | Bank of Queensland vs. Insignia Financial |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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