Correlation Between Aspire Mining and Retail Food
Can any of the company-specific risk be diversified away by investing in both Aspire Mining and Retail Food 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 Aspire Mining and Retail Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aspire Mining and Retail Food Group, you can compare the effects of market volatilities on Aspire Mining and Retail Food 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 Aspire Mining with a short position of Retail Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aspire Mining and Retail Food.
Diversification Opportunities for Aspire Mining and Retail Food
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Aspire and Retail is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Aspire Mining and Retail Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Retail Food Group and Aspire Mining 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 Aspire Mining are associated (or correlated) with Retail Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Retail Food Group has no effect on the direction of Aspire Mining i.e., Aspire Mining and Retail Food go up and down completely randomly.
Pair Corralation between Aspire Mining and Retail Food
Assuming the 90 days trading horizon Aspire Mining is expected to generate 1.96 times more return on investment than Retail Food. However, Aspire Mining is 1.96 times more volatile than Retail Food Group. It trades about 0.05 of its potential returns per unit of risk. Retail Food Group is currently generating about -0.12 per unit of risk. If you would invest 26.00 in Aspire Mining on December 29, 2024 and sell it today you would earn a total of 2.00 from holding Aspire Mining or generate 7.69% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Aspire Mining vs. Retail Food Group
Performance |
Timeline |
Aspire Mining |
Retail Food Group |
Aspire Mining and Retail Food Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Aspire Mining and Retail Food
The main advantage of trading using opposite Aspire Mining and Retail Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aspire Mining position performs unexpectedly, Retail Food 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 Retail Food will offset losses from the drop in Retail Food's long position.Aspire Mining vs. Regis Healthcare | Aspire Mining vs. Super Retail Group | Aspire Mining vs. Aussie Broadband | Aspire Mining vs. Silver Mines |
Retail Food vs. Aussie Broadband | Retail Food vs. Catalyst Metals | Retail Food vs. ChemX Materials | Retail Food vs. Dalaroo Metals |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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