Correlation Between Australian Oilseeds and CPI Card
Can any of the company-specific risk be diversified away by investing in both Australian Oilseeds and CPI Card 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 Australian Oilseeds and CPI Card into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Australian Oilseeds Holdings and CPI Card Group, you can compare the effects of market volatilities on Australian Oilseeds and CPI Card 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 Australian Oilseeds with a short position of CPI Card. Check out your portfolio center. Please also check ongoing floating volatility patterns of Australian Oilseeds and CPI Card.
Diversification Opportunities for Australian Oilseeds and CPI Card
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Australian and CPI is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Australian Oilseeds Holdings and CPI Card Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CPI Card Group and Australian Oilseeds 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 Australian Oilseeds Holdings are associated (or correlated) with CPI Card. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CPI Card Group has no effect on the direction of Australian Oilseeds i.e., Australian Oilseeds and CPI Card go up and down completely randomly.
Pair Corralation between Australian Oilseeds and CPI Card
Given the investment horizon of 90 days Australian Oilseeds Holdings is expected to generate 5.27 times more return on investment than CPI Card. However, Australian Oilseeds is 5.27 times more volatile than CPI Card Group. It trades about 0.09 of its potential returns per unit of risk. CPI Card Group is currently generating about 0.07 per unit of risk. If you would invest 56.00 in Australian Oilseeds Holdings on September 11, 2025 and sell it today you would earn a total of 26.01 from holding Australian Oilseeds Holdings or generate 46.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Australian Oilseeds Holdings vs. CPI Card Group
Performance |
| Timeline |
| Australian Oilseeds |
| CPI Card Group |
Australian Oilseeds and CPI Card Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Australian Oilseeds and CPI Card
The main advantage of trading using opposite Australian Oilseeds and CPI Card positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Australian Oilseeds position performs unexpectedly, CPI Card 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 CPI Card will offset losses from the drop in CPI Card's long position.| Australian Oilseeds vs. Farmer Bros Co | Australian Oilseeds vs. BranchOut Food Common | Australian Oilseeds vs. Jianzhi Education Technology | Australian Oilseeds vs. Big Tree Cloud |
| CPI Card vs. Consumer Portfolio Services | CPI Card vs. Open Lending Corp | CPI Card vs. Security National Financial | CPI Card vs. Currenc Group Ordinary |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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