Correlation Between Collins Foods and Shopping Centres

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

By analyzing existing cross correlation between Collins Foods and Shopping Centres Australasia, you can compare the effects of market volatilities on Collins Foods and Shopping Centres 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 Collins Foods with a short position of Shopping Centres. Check out your portfolio center. Please also check ongoing floating volatility patterns of Collins Foods and Shopping Centres.

Diversification Opportunities for Collins Foods and Shopping Centres

0.0

Correlation Coefficient

Collins Foods  Shopping Centres

Pay attention - limited upside

The 3 months correlation between Collins and Shopping is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Collins Foods and Shopping Centres Australasia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shopping Centres Aus and Collins Foods 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 Collins Foods are associated (or correlated) with Shopping Centres. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shopping Centres Aus has no effect on the direction of Collins Foods i.e., Collins Foods and Shopping Centres go up and down completely randomly.

Pair Corralation between Collins Foods and Shopping Centres

If you would invest  745.00  in Collins Foods on October 8, 2024 and sell it today you would lose (6.00) from holding Collins Foods or give up 0.81% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Collins Foods  vs.  Shopping Centres Australasia

Collins Foods

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Collins Foods has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's technical and fundamental indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Shopping Centres Aus

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Shopping Centres Australasia has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable fundamental indicators, Shopping Centres is not utilizing all of its potentials. The newest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Collins Foods and Shopping Centres

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

The idea behind Collins Foods and Shopping Centres Australasia 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.