Correlation Between Southern Cross and M8 Sustainable
Can any of the company-specific risk be diversified away by investing in both Southern Cross and M8 Sustainable 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 M8 Sustainable 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 M8 Sustainable, you can compare the effects of market volatilities on Southern Cross and M8 Sustainable 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 M8 Sustainable. Check out your portfolio center. Please also check ongoing floating volatility patterns of Southern Cross and M8 Sustainable.
Diversification Opportunities for Southern Cross and M8 Sustainable
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Southern and M8S is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Southern Cross Gold and M8 Sustainable in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on M8 Sustainable 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 M8 Sustainable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of M8 Sustainable has no effect on the direction of Southern Cross i.e., Southern Cross and M8 Sustainable go up and down completely randomly.
Pair Corralation between Southern Cross and M8 Sustainable
If you would invest 281.00 in Southern Cross Gold on November 2, 2024 and sell it today you would earn a total of 64.00 from holding Southern Cross Gold or generate 22.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 97.14% |
| Values | Daily Returns |
Southern Cross Gold vs. M8 Sustainable
Performance |
| Timeline |
| Southern Cross Gold |
| M8 Sustainable |
Southern Cross and M8 Sustainable Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Southern Cross and M8 Sustainable
The main advantage of trading using opposite Southern Cross and M8 Sustainable positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Southern Cross position performs unexpectedly, M8 Sustainable 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 M8 Sustainable will offset losses from the drop in M8 Sustainable's long position.| Southern Cross vs. Northern Star Resources | Southern Cross vs. Evolution Mining | Southern Cross vs. Bluescope Steel | Southern Cross vs. De Grey Mining |
| M8 Sustainable vs. Iron Road | M8 Sustainable vs. IDP Education | M8 Sustainable vs. Alternative Investment Trust | M8 Sustainable vs. Clime 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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