Correlation Between Southern Cross and Academies Australasia
Can any of the company-specific risk be diversified away by investing in both Southern Cross and Academies Australasia 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 Southern Cross and Academies Australasia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Southern Cross Gold and Academies Australasia Group, you can compare the effects of market volatilities on Southern Cross and Academies Australasia 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 Southern Cross with a short position of Academies Australasia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Southern Cross and Academies Australasia.
Diversification Opportunities for Southern Cross and Academies Australasia
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Southern and Academies is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Southern Cross Gold and Academies Australasia Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Academies Australasia and Southern Cross 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 Southern Cross Gold are associated (or correlated) with Academies Australasia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Academies Australasia has no effect on the direction of Southern Cross i.e., Southern Cross and Academies Australasia go up and down completely randomly.
Pair Corralation between Southern Cross and Academies Australasia
Assuming the 90 days trading horizon Southern Cross Gold is expected to generate 1.19 times more return on investment than Academies Australasia. However, Southern Cross is 1.19 times more volatile than Academies Australasia Group. It trades about 0.08 of its potential returns per unit of risk. Academies Australasia Group is currently generating about -0.02 per unit of risk. If you would invest 73.00 in Southern Cross Gold on October 7, 2024 and sell it today you would earn a total of 281.00 from holding Southern Cross Gold or generate 384.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Southern Cross Gold vs. Academies Australasia Group
Performance |
| Timeline |
| Southern Cross Gold |
| Academies Australasia |
Southern Cross and Academies Australasia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Southern Cross and Academies Australasia
The main advantage of trading using opposite Southern Cross and Academies Australasia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Southern Cross position performs unexpectedly, Academies Australasia 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 Academies Australasia will offset losses from the drop in Academies Australasia's long position.| Southern Cross vs. Nufarm Finance NZ | Southern Cross vs. RLF AgTech | Southern Cross vs. Black Rock Mining | Southern Cross vs. Truscott Mining Corp |
| Academies Australasia vs. G8 Education | Academies Australasia vs. Actinogen Medical | Academies Australasia vs. Hutchison Telecommunications | Academies Australasia vs. Navigator Global 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |