Correlation Between Australian Oilseeds and Wicket Gaming

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

By analyzing existing cross correlation between Australian Oilseeds Holdings and Wicket Gaming AB, you can compare the effects of market volatilities on Australian Oilseeds and Wicket Gaming 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 Australian Oilseeds with a short position of Wicket Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Australian Oilseeds and Wicket Gaming.

Diversification Opportunities for Australian Oilseeds and Wicket Gaming

0.0

Correlation Coefficient

Australian Oilseeds  Wicket Gaming

Pay attention - limited upside

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

Pair Corralation between Australian Oilseeds and Wicket Gaming

If you would invest  78.00  in Australian Oilseeds Holdings on September 5, 2024 and sell it today you would earn a total of  15.00  from holding Australian Oilseeds Holdings or generate 19.23% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	45.45%
Values	Daily Returns

Australian Oilseeds Holdings  vs.  Wicket Gaming AB

Australian Oilseeds

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Australian Oilseeds Holdings are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Australian Oilseeds may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Wicket Gaming AB

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Wicket Gaming AB has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Wicket Gaming is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Australian Oilseeds and Wicket Gaming

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

The idea behind Australian Oilseeds Holdings and Wicket Gaming AB 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.