Correlation Between ABACUS STORAGE and Bendigo

Can any of the company-specific risk be diversified away by investing in both ABACUS STORAGE and Bendigo 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 ABACUS STORAGE and Bendigo into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ABACUS STORAGE KING and Bendigo And Adelaide, you can compare the effects of market volatilities on ABACUS STORAGE and Bendigo 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 ABACUS STORAGE with a short position of Bendigo. Check out your portfolio center. Please also check ongoing floating volatility patterns of ABACUS STORAGE and Bendigo.

Diversification Opportunities for ABACUS STORAGE and Bendigo

-0.83

Correlation Coefficient

ABACUS STORAGE  Bendigo

Pay attention - limited upside

The 3 months correlation between ABACUS and Bendigo is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding ABACUS STORAGE KING and Bendigo And Adelaide in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bendigo And Adelaide and ABACUS STORAGE 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 ABACUS STORAGE KING are associated (or correlated) with Bendigo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bendigo And Adelaide has no effect on the direction of ABACUS STORAGE i.e., ABACUS STORAGE and Bendigo go up and down completely randomly.

Pair Corralation between ABACUS STORAGE and Bendigo

Assuming the 90 days trading horizon ABACUS STORAGE KING is expected to generate 46.43 times more return on investment than Bendigo. However, ABACUS STORAGE is 46.43 times more volatile than Bendigo And Adelaide. It trades about 0.05 of its potential returns per unit of risk. Bendigo And Adelaide is currently generating about 0.08 per unit of risk. If you would invest  128.00  in ABACUS STORAGE KING on September 26, 2024 and sell it today you would lose (9.00) from holding ABACUS STORAGE KING or give up 7.03% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	71.51%
Values	Daily Returns

ABACUS STORAGE KING  vs.  Bendigo And Adelaide

ABACUS STORAGE KING

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ABACUS STORAGE KING has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's forward-looking signals remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Bendigo And Adelaide

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Bendigo And Adelaide are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Bendigo may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with ABACUS STORAGE and Bendigo

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

The idea behind ABACUS STORAGE KING and Bendigo And Adelaide 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.