Correlation Between Gtn and Westpac Banking
Can any of the company-specific risk be diversified away by investing in both Gtn and Westpac Banking 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 Gtn and Westpac Banking into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gtn and Westpac Banking, you can compare the effects of market volatilities on Gtn and Westpac Banking 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 Gtn with a short position of Westpac Banking. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gtn and Westpac Banking.
Diversification Opportunities for Gtn and Westpac Banking
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Gtn and Westpac is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Gtn and Westpac Banking in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Westpac Banking and Gtn 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 Gtn are associated (or correlated) with Westpac Banking. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Westpac Banking has no effect on the direction of Gtn i.e., Gtn and Westpac Banking go up and down completely randomly.
Pair Corralation between Gtn and Westpac Banking
If you would invest 47.00 in Gtn on September 24, 2024 and sell it today you would earn a total of 10.00 from holding Gtn or generate 21.28% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Gtn vs. Westpac Banking
Performance |
Timeline |
Gtn |
Westpac Banking |
Gtn and Westpac Banking Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Gtn and Westpac Banking
The main advantage of trading using opposite Gtn and Westpac Banking positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gtn position performs unexpectedly, Westpac Banking 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 Westpac Banking will offset losses from the drop in Westpac Banking's long position.Gtn vs. Westpac Banking | Gtn vs. Ecofibre | Gtn vs. iShares Global Healthcare | Gtn vs. Australian Dairy Farms |
Westpac Banking vs. Aneka Tambang Tbk | Westpac Banking vs. BHP Group Limited | Westpac Banking vs. Commonwealth Bank | Westpac Banking vs. Commonwealth Bank of |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
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 | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
Global Correlations Find global opportunities by holding instruments from different markets | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |