Correlation Between Strickland Metals and Group 6
Can any of the company-specific risk be diversified away by investing in both Strickland Metals and Group 6 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 Strickland Metals and Group 6 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Strickland Metals and Group 6 Metals, you can compare the effects of market volatilities on Strickland Metals and Group 6 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 Strickland Metals with a short position of Group 6. Check out your portfolio center. Please also check ongoing floating volatility patterns of Strickland Metals and Group 6.
Diversification Opportunities for Strickland Metals and Group 6
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Strickland and Group is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Strickland Metals and Group 6 Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Group 6 Metals and Strickland Metals 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 Strickland Metals are associated (or correlated) with Group 6. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Group 6 Metals has no effect on the direction of Strickland Metals i.e., Strickland Metals and Group 6 go up and down completely randomly.
Pair Corralation between Strickland Metals and Group 6
If you would invest 6.60 in Strickland Metals on August 31, 2024 and sell it today you would earn a total of 1.00 from holding Strickland Metals or generate 15.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Strickland Metals vs. Group 6 Metals
Performance |
| Timeline |
| Strickland Metals |
| Group 6 Metals |
Strickland Metals and Group 6 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Strickland Metals and Group 6
The main advantage of trading using opposite Strickland Metals and Group 6 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Strickland Metals position performs unexpectedly, Group 6 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 Group 6 will offset losses from the drop in Group 6's long position.| Strickland Metals vs. Hudson Investment Group | Strickland Metals vs. Diversified United Investment | Strickland Metals vs. Aussie Broadband | Strickland Metals vs. Australian Unity Office |
| Group 6 vs. Aussie Broadband | Group 6 vs. Regal Investment | Group 6 vs. Carlton Investments | Group 6 vs. Pinnacle Investment Management |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |