Correlation Between Autosports Group and Srj Technologies
Can any of the company-specific risk be diversified away by investing in both Autosports Group and Srj Technologies 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 Autosports Group and Srj Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Autosports Group and Srj Technologies Group, you can compare the effects of market volatilities on Autosports Group and Srj Technologies 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 Autosports Group with a short position of Srj Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Autosports Group and Srj Technologies.
Diversification Opportunities for Autosports Group and Srj Technologies
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Autosports and Srj is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Autosports Group and Srj Technologies Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Srj Technologies and Autosports Group 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 Autosports Group are associated (or correlated) with Srj Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Srj Technologies has no effect on the direction of Autosports Group i.e., Autosports Group and Srj Technologies go up and down completely randomly.
Pair Corralation between Autosports Group and Srj Technologies
Assuming the 90 days trading horizon Autosports Group is expected to generate 0.31 times more return on investment than Srj Technologies. However, Autosports Group is 3.18 times less risky than Srj Technologies. It trades about 0.04 of its potential returns per unit of risk. Srj Technologies Group is currently generating about -0.1 per unit of risk. If you would invest 172.00 in Autosports Group on December 30, 2024 and sell it today you would earn a total of 6.00 from holding Autosports Group or generate 3.49% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Autosports Group vs. Srj Technologies Group
Performance |
Timeline |
Autosports Group |
Srj Technologies |
Autosports Group and Srj Technologies Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Autosports Group and Srj Technologies
The main advantage of trading using opposite Autosports Group and Srj Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Autosports Group position performs unexpectedly, Srj Technologies 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 Srj Technologies will offset losses from the drop in Srj Technologies' long position.Autosports Group vs. COAST ENTERTAINMENT HOLDINGS | Autosports Group vs. Skycity Entertainment Group | Autosports Group vs. Vitura Health Limited | Autosports Group vs. Apiam Animal Health |
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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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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