Correlation Between Southern Cross and Cleanaway Waste
Can any of the company-specific risk be diversified away by investing in both Southern Cross and Cleanaway Waste 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 Cleanaway Waste 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 Cleanaway Waste Management, you can compare the effects of market volatilities on Southern Cross and Cleanaway Waste 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 Cleanaway Waste. Check out your portfolio center. Please also check ongoing floating volatility patterns of Southern Cross and Cleanaway Waste.
Diversification Opportunities for Southern Cross and Cleanaway Waste
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Southern and Cleanaway is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Southern Cross Gold and Cleanaway Waste Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cleanaway Waste Mana 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 Cleanaway Waste. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cleanaway Waste Mana has no effect on the direction of Southern Cross i.e., Southern Cross and Cleanaway Waste go up and down completely randomly.
Pair Corralation between Southern Cross and Cleanaway Waste
Assuming the 90 days trading horizon Southern Cross Gold is expected to generate 3.7 times more return on investment than Cleanaway Waste. However, Southern Cross is 3.7 times more volatile than Cleanaway Waste Management. It trades about 0.08 of its potential returns per unit of risk. Cleanaway Waste Management is currently generating about 0.01 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. Cleanaway Waste Management
Performance |
| Timeline |
| Southern Cross Gold |
| Cleanaway Waste Mana |
Southern Cross and Cleanaway Waste Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Southern Cross and Cleanaway Waste
The main advantage of trading using opposite Southern Cross and Cleanaway Waste positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Southern Cross position performs unexpectedly, Cleanaway Waste 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 Cleanaway Waste will offset losses from the drop in Cleanaway Waste'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 |
| Cleanaway Waste vs. Aneka Tambang Tbk | Cleanaway Waste vs. BHP Group Limited | Cleanaway Waste vs. Commonwealth Bank | Cleanaway Waste vs. Commonwealth Bank of |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |