Correlation Between Westpac Banking and Super Retail
Can any of the company-specific risk be diversified away by investing in both Westpac Banking and Super Retail 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 Westpac Banking and Super Retail into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Westpac Banking and Super Retail Group, you can compare the effects of market volatilities on Westpac Banking and Super Retail 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 Westpac Banking with a short position of Super Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Westpac Banking and Super Retail.
Diversification Opportunities for Westpac Banking and Super Retail
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Westpac and Super is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Westpac Banking and Super Retail Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Super Retail Group and Westpac Banking 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 Westpac Banking are associated (or correlated) with Super Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Super Retail Group has no effect on the direction of Westpac Banking i.e., Westpac Banking and Super Retail go up and down completely randomly.
Pair Corralation between Westpac Banking and Super Retail
If you would invest 10,032 in Westpac Banking on September 3, 2024 and sell it today you would earn a total of 0.00 from holding Westpac Banking or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Westpac Banking vs. Super Retail Group
Performance |
| Timeline |
| Westpac Banking |
| Super Retail Group |
Westpac Banking and Super Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Westpac Banking and Super Retail
The main advantage of trading using opposite Westpac Banking and Super Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Westpac Banking position performs unexpectedly, Super Retail 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 Super Retail will offset losses from the drop in Super Retail's long position.| Westpac Banking vs. Kip McGrath Education | Westpac Banking vs. Alto Metals | Westpac Banking vs. Leeuwin Metals | Westpac Banking vs. Centaurus Metals |
| Super Retail vs. Westpac Banking | Super Retail vs. Champion Iron | Super Retail vs. iShares Global Healthcare | Super Retail vs. Peel Mining |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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