Correlation Between INSURANCE AUST and Wisetech Global

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

By analyzing existing cross correlation between INSURANCE AUST GRP and Wisetech Global, you can compare the effects of market volatilities on INSURANCE AUST and Wisetech Global 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 INSURANCE AUST with a short position of Wisetech Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of INSURANCE AUST and Wisetech Global.

Diversification Opportunities for INSURANCE AUST and Wisetech Global

0.0

Correlation Coefficient

INSURANCE AUST  Wisetech Global

Pay attention - limited upside

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

Pair Corralation between INSURANCE AUST and Wisetech Global

If you would invest (100.00) in Wisetech Global on December 22, 2024 and sell it today you would earn a total of  100.00  from holding Wisetech Global or generate -100.0% return on investment over 90 days.

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

INSURANCE AUST GRP  vs.  Wisetech Global

INSURANCE AUST GRP

Risk-Adjusted Performance

Very Weak

Over the last 90 days INSURANCE AUST GRP has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's primary indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Wisetech Global

Risk-Adjusted Performance

Very Weak

Over the last 90 days Wisetech Global has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with INSURANCE AUST and Wisetech Global

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

The idea behind INSURANCE AUST GRP and Wisetech Global 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.