Correlation Between Vitura Health and Auking Mining
Can any of the company-specific risk be diversified away by investing in both Vitura Health and Auking Mining 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 Vitura Health and Auking Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vitura Health Limited and Auking Mining, you can compare the effects of market volatilities on Vitura Health and Auking Mining 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 Vitura Health with a short position of Auking Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vitura Health and Auking Mining.
Diversification Opportunities for Vitura Health and Auking Mining
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Vitura and Auking is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Vitura Health Limited and Auking Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Auking Mining and Vitura Health 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 Vitura Health Limited are associated (or correlated) with Auking Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Auking Mining has no effect on the direction of Vitura Health i.e., Vitura Health and Auking Mining go up and down completely randomly.
Pair Corralation between Vitura Health and Auking Mining
Assuming the 90 days trading horizon Vitura Health Limited is expected to generate 0.32 times more return on investment than Auking Mining. However, Vitura Health Limited is 3.08 times less risky than Auking Mining. It trades about -0.06 of its potential returns per unit of risk. Auking Mining is currently generating about -0.16 per unit of risk. If you would invest 8.20 in Vitura Health Limited on November 3, 2024 and sell it today you would lose (0.40) from holding Vitura Health Limited or give up 4.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vitura Health Limited vs. Auking Mining
Performance |
| Timeline |
| Vitura Health Limited |
| Auking Mining |
Vitura Health and Auking Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vitura Health and Auking Mining
The main advantage of trading using opposite Vitura Health and Auking Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vitura Health position performs unexpectedly, Auking Mining 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 Auking Mining will offset losses from the drop in Auking Mining's long position.| Vitura Health vs. Medical Developments International | Vitura Health vs. ARN Media Limited | Vitura Health vs. oOhMedia | Vitura Health vs. Computershare |
| Auking Mining vs. Super Retail Group | Auking Mining vs. Dexus Convenience Retail | Auking Mining vs. Charter Hall Retail | Auking Mining vs. Advanced Braking Technology |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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