Correlation Between Acorn Capital and Centaurus Metals
Can any of the company-specific risk be diversified away by investing in both Acorn Capital and Centaurus Metals 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 Acorn Capital and Centaurus Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acorn Capital Investment and Centaurus Metals, you can compare the effects of market volatilities on Acorn Capital and Centaurus Metals 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 Acorn Capital with a short position of Centaurus Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acorn Capital and Centaurus Metals.
Diversification Opportunities for Acorn Capital and Centaurus Metals
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Acorn and Centaurus is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Acorn Capital Investment and Centaurus Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Centaurus Metals and Acorn Capital 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 Acorn Capital Investment are associated (or correlated) with Centaurus Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Centaurus Metals has no effect on the direction of Acorn Capital i.e., Acorn Capital and Centaurus Metals go up and down completely randomly.
Pair Corralation between Acorn Capital and Centaurus Metals
Assuming the 90 days trading horizon Acorn Capital is expected to generate 6.75 times less return on investment than Centaurus Metals. But when comparing it to its historical volatility, Acorn Capital Investment is 3.22 times less risky than Centaurus Metals. It trades about 0.05 of its potential returns per unit of risk. Centaurus Metals is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 35.00 in Centaurus Metals on September 6, 2025 and sell it today you would earn a total of 8.00 from holding Centaurus Metals or generate 22.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Acorn Capital Investment vs. Centaurus Metals
Performance |
| Timeline |
| Acorn Capital Investment |
| Centaurus Metals |
Acorn Capital and Centaurus Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acorn Capital and Centaurus Metals
The main advantage of trading using opposite Acorn Capital and Centaurus Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acorn Capital position performs unexpectedly, Centaurus Metals 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 Centaurus Metals will offset losses from the drop in Centaurus Metals' long position.| Acorn Capital vs. Bailador Technology Investments | Acorn Capital vs. Pinnacle Investment Management | Acorn Capital vs. Beam Communications Holdings | Acorn Capital vs. Aussie Broadband |
| Centaurus Metals vs. K2 Asset Management | Centaurus Metals vs. Microequities Asset Management | Centaurus Metals vs. Motorcycle Holdings | Centaurus Metals vs. Emvision Medical Devices |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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