Correlation Between Sandon Capital and Auswide Bank
Can any of the company-specific risk be diversified away by investing in both Sandon Capital and Auswide Bank 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 Sandon Capital and Auswide Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sandon Capital Investments and Auswide Bank, you can compare the effects of market volatilities on Sandon Capital and Auswide Bank 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 Sandon Capital with a short position of Auswide Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sandon Capital and Auswide Bank.
Diversification Opportunities for Sandon Capital and Auswide Bank
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sandon and Auswide is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Sandon Capital Investments and Auswide Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Auswide Bank and Sandon Capital 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 Sandon Capital Investments are associated (or correlated) with Auswide Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Auswide Bank has no effect on the direction of Sandon Capital i.e., Sandon Capital and Auswide Bank go up and down completely randomly.
Pair Corralation between Sandon Capital and Auswide Bank
Assuming the 90 days trading horizon Sandon Capital Investments is expected to generate 1.38 times more return on investment than Auswide Bank. However, Sandon Capital is 1.38 times more volatile than Auswide Bank. It trades about 0.04 of its potential returns per unit of risk. Auswide Bank is currently generating about -0.03 per unit of risk. If you would invest 56.00 in Sandon Capital Investments on September 12, 2024 and sell it today you would earn a total of 20.00 from holding Sandon Capital Investments or generate 35.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Sandon Capital Investments vs. Auswide Bank
Performance |
| Timeline |
| Sandon Capital Inves |
| Auswide Bank |
Sandon Capital and Auswide Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sandon Capital and Auswide Bank
The main advantage of trading using opposite Sandon Capital and Auswide Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sandon Capital position performs unexpectedly, Auswide Bank 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 Auswide Bank will offset losses from the drop in Auswide Bank's long position.| Sandon Capital vs. Latitude Financial Services | Sandon Capital vs. Pioneer Credit | Sandon Capital vs. ABACUS STORAGE KING | Sandon Capital vs. Flagship Investments |
| Auswide Bank vs. Black Rock Mining | Auswide Bank vs. MFF Capital Investments | Auswide Bank vs. Andean Silver Limited | Auswide Bank vs. Sandon Capital Investments |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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