Correlation Between SEVEN GROUP and Althea Group
Can any of the company-specific risk be diversified away by investing in both SEVEN GROUP and Althea Group 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 SEVEN GROUP and Althea Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SEVEN GROUP HOLDINGS and Althea Group Holdings, you can compare the effects of market volatilities on SEVEN GROUP and Althea Group 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 SEVEN GROUP with a short position of Althea Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of SEVEN GROUP and Althea Group.
Diversification Opportunities for SEVEN GROUP and Althea Group
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SEVEN and Althea is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding SEVEN GROUP HOLDINGS and Althea Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Althea Group Holdings and SEVEN GROUP 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 SEVEN GROUP HOLDINGS are associated (or correlated) with Althea Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Althea Group Holdings has no effect on the direction of SEVEN GROUP i.e., SEVEN GROUP and Althea Group go up and down completely randomly.
Pair Corralation between SEVEN GROUP and Althea Group
If you would invest 4,491 in SEVEN GROUP HOLDINGS on October 21, 2024 and sell it today you would earn a total of 106.00 from holding SEVEN GROUP HOLDINGS or generate 2.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SEVEN GROUP HOLDINGS vs. Althea Group Holdings
Performance |
| Timeline |
| SEVEN GROUP HOLDINGS |
| Althea Group Holdings |
SEVEN GROUP and Althea Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SEVEN GROUP and Althea Group
The main advantage of trading using opposite SEVEN GROUP and Althea Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SEVEN GROUP position performs unexpectedly, Althea Group 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 Althea Group will offset losses from the drop in Althea Group's long position.| SEVEN GROUP vs. Macquarie Group | SEVEN GROUP vs. Macquarie Group Ltd | SEVEN GROUP vs. Commonwealth Bank | SEVEN GROUP vs. Rio Tinto |
| Althea Group vs. Australian Unity Office | Althea Group vs. Magellan Financial Group | Althea Group vs. K2 Asset Management | Althea Group vs. Platinum Asset 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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