Correlation Between Actinogen Medical and Bank of Queensland Limite

Can any of the company-specific risk be diversified away by investing in both Actinogen Medical and Bank of Queensland Limite 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 Actinogen Medical and Bank of Queensland Limite into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Actinogen Medical and Bank of Queensland, you can compare the effects of market volatilities on Actinogen Medical and Bank of Queensland Limite 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 Actinogen Medical with a short position of Bank of Queensland Limite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Actinogen Medical and Bank of Queensland Limite.

Diversification Opportunities for Actinogen Medical and Bank of Queensland Limite

0.59

Correlation Coefficient

Actinogen Medical  Bank of Queensland Limite

Very weak diversification

The 3 months correlation between Actinogen and Bank is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Actinogen Medical and Bank of Queensland in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of Queensland Limite and Actinogen Medical 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 Actinogen Medical are associated (or correlated) with Bank of Queensland Limite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of Queensland Limite has no effect on the direction of Actinogen Medical i.e., Actinogen Medical and Bank of Queensland Limite go up and down completely randomly.

Pair Corralation between Actinogen Medical and Bank of Queensland Limite

Assuming the 90 days trading horizon Actinogen Medical is expected to generate 17.49 times more return on investment than Bank of Queensland Limite. However, Actinogen Medical is 17.49 times more volatile than Bank of Queensland. It trades about 0.12 of its potential returns per unit of risk. Bank of Queensland is currently generating about 0.04 per unit of risk. If you would invest  2.50  in Actinogen Medical on December 22, 2024 and sell it today you would earn a total of  0.90  from holding Actinogen Medical or generate 36.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Actinogen Medical  vs.  Bank of Queensland

Actinogen Medical

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Actinogen Medical are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Actinogen Medical unveiled solid returns over the last few months and may actually be approaching a breakup point.

Bank of Queensland Limite

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Bank of Queensland are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Bank of Queensland Limite is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Actinogen Medical and Bank of Queensland Limite

The main advantage of trading using opposite Actinogen Medical and Bank of Queensland Limite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Actinogen Medical position performs unexpectedly, Bank of Queensland Limite 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 Bank of Queensland Limite will offset losses from the drop in Bank of Queensland Limite's long position.

The idea behind Actinogen Medical and Bank of Queensland pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..