Correlation Between Pointsbet Holdings and Suncorp

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

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

Diversification Opportunities for Pointsbet Holdings and Suncorp

-0.74

Correlation Coefficient

Pointsbet Holdings  Suncorp

Pay attention - limited upside

The 3 months correlation between Pointsbet and Suncorp is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Pointsbet Holdings and Suncorp Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suncorp Group and Pointsbet Holdings 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 Pointsbet Holdings are associated (or correlated) with Suncorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suncorp Group has no effect on the direction of Pointsbet Holdings i.e., Pointsbet Holdings and Suncorp go up and down completely randomly.

Pair Corralation between Pointsbet Holdings and Suncorp

Assuming the 90 days trading horizon Pointsbet Holdings is expected to generate 1.83 times more return on investment than Suncorp. However, Pointsbet Holdings is 1.83 times more volatile than Suncorp Group. It trades about 0.04 of its potential returns per unit of risk. Suncorp Group is currently generating about -0.07 per unit of risk. If you would invest  103.00  in Pointsbet Holdings on December 30, 2024 and sell it today you would earn a total of  5.00  from holding Pointsbet Holdings or generate 4.85% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Pointsbet Holdings  vs.  Suncorp Group

Pointsbet Holdings

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Pointsbet Holdings are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain technical indicators, Pointsbet Holdings may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Suncorp Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Suncorp Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Pointsbet Holdings and Suncorp

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

The idea behind Pointsbet Holdings and Suncorp Group 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.