Correlation Between Peak Resources and SECURITAS
Can any of the company-specific risk be diversified away by investing in both Peak Resources and SECURITAS 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 Peak Resources and SECURITAS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Peak Resources Limited and SECURITAS B , you can compare the effects of market volatilities on Peak Resources and SECURITAS 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 Peak Resources with a short position of SECURITAS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peak Resources and SECURITAS.
Diversification Opportunities for Peak Resources and SECURITAS
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Peak and SECURITAS is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Peak Resources Limited and SECURITAS B in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SECURITAS B and Peak Resources 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 Peak Resources Limited are associated (or correlated) with SECURITAS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SECURITAS B has no effect on the direction of Peak Resources i.e., Peak Resources and SECURITAS go up and down completely randomly.
Pair Corralation between Peak Resources and SECURITAS
Assuming the 90 days horizon Peak Resources Limited is expected to under-perform the SECURITAS. In addition to that, Peak Resources is 3.26 times more volatile than SECURITAS B . It trades about -0.04 of its total potential returns per unit of risk. SECURITAS B is currently generating about 0.18 per unit of volatility. If you would invest 873.00 in SECURITAS B on September 4, 2024 and sell it today you would earn a total of 309.00 from holding SECURITAS B or generate 35.4% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 98.46% |
Values | Daily Returns |
Peak Resources Limited vs. SECURITAS B
Performance |
Timeline |
Peak Resources |
SECURITAS B |
Peak Resources and SECURITAS Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Peak Resources and SECURITAS
The main advantage of trading using opposite Peak Resources and SECURITAS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peak Resources position performs unexpectedly, SECURITAS 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 SECURITAS will offset losses from the drop in SECURITAS's long position.Peak Resources vs. BHP Group Limited | Peak Resources vs. Rio Tinto Group | Peak Resources vs. Vale SA | Peak Resources vs. Glencore plc |
SECURITAS vs. AECOM TECHNOLOGY | SECURITAS vs. ADRIATIC METALS LS 013355 | SECURITAS vs. Sunny Optical Technology | SECURITAS vs. Ming Le Sports |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Content Syndication Quickly integrate customizable finance content to your own investment portal | |
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data |