Correlation Between Charter Hall and Audio Pixels

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

By analyzing existing cross correlation between Charter Hall Retail and Audio Pixels Holdings, you can compare the effects of market volatilities on Charter Hall and Audio Pixels 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 Charter Hall with a short position of Audio Pixels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Charter Hall and Audio Pixels.

Diversification Opportunities for Charter Hall and Audio Pixels

0.0

Correlation Coefficient

Charter Hall  Audio Pixels

Pay attention - limited upside

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

Pair Corralation between Charter Hall and Audio Pixels

Assuming the 90 days trading horizon Charter Hall Retail is expected to generate 1.01 times more return on investment than Audio Pixels. However, Charter Hall is 1.01 times more volatile than Audio Pixels Holdings. It trades about -0.01 of its potential returns per unit of risk. Audio Pixels Holdings is currently generating about -0.08 per unit of risk. If you would invest  332.00  in Charter Hall Retail on October 6, 2024 and sell it today you would lose (12.00) from holding Charter Hall Retail or give up 3.61% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Charter Hall Retail  vs.  Audio Pixels Holdings

Charter Hall Retail

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Charter Hall Retail has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Charter Hall is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Audio Pixels Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Audio Pixels Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Audio Pixels is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Charter Hall and Audio Pixels

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

The idea behind Charter Hall Retail and Audio Pixels Holdings 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.