Correlation Between Southern Cross and Beston Global
Can any of the company-specific risk be diversified away by investing in both Southern Cross and Beston Global 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 Beston Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Southern Cross Media and Beston Global Food, you can compare the effects of market volatilities on Southern Cross and Beston Global 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 Beston Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Southern Cross and Beston Global.
Diversification Opportunities for Southern Cross and Beston Global
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Southern and Beston is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Southern Cross Media and Beston Global Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beston Global Food 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 Media are associated (or correlated) with Beston Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beston Global Food has no effect on the direction of Southern Cross i.e., Southern Cross and Beston Global go up and down completely randomly.
Pair Corralation between Southern Cross and Beston Global
If you would invest 56.00 in Southern Cross Media on October 16, 2024 and sell it today you would earn a total of 4.00 from holding Southern Cross Media or generate 7.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Southern Cross Media vs. Beston Global Food
Performance |
| Timeline |
| Southern Cross Media |
| Beston Global Food |
Southern Cross and Beston Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Southern Cross and Beston Global
The main advantage of trading using opposite Southern Cross and Beston Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Southern Cross position performs unexpectedly, Beston Global 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 Beston Global will offset losses from the drop in Beston Global's long position.| Southern Cross vs. Aurelia Metals | Southern Cross vs. MetalsGrove Mining | Southern Cross vs. Collins Foods | Southern Cross vs. Black Rock Mining |
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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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