Correlation Between Serabi Gold and Australian Agricultural
Can any of the company-specific risk be diversified away by investing in both Serabi Gold and Australian Agricultural 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 Serabi Gold and Australian Agricultural into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Serabi Gold PLC and Australian Agricultural, you can compare the effects of market volatilities on Serabi Gold and Australian Agricultural 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 Serabi Gold with a short position of Australian Agricultural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Serabi Gold and Australian Agricultural.
Diversification Opportunities for Serabi Gold and Australian Agricultural
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Serabi and Australian is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Serabi Gold PLC and Australian Agricultural in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Australian Agricultural and Serabi Gold 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 Serabi Gold PLC are associated (or correlated) with Australian Agricultural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Australian Agricultural has no effect on the direction of Serabi Gold i.e., Serabi Gold and Australian Agricultural go up and down completely randomly.
Pair Corralation between Serabi Gold and Australian Agricultural
Assuming the 90 days horizon Serabi Gold PLC is expected to generate 2.2 times more return on investment than Australian Agricultural. However, Serabi Gold is 2.2 times more volatile than Australian Agricultural. It trades about 0.08 of its potential returns per unit of risk. Australian Agricultural is currently generating about 0.01 per unit of risk. If you would invest 318.00 in Serabi Gold PLC on September 10, 2025 and sell it today you would earn a total of 61.00 from holding Serabi Gold PLC or generate 19.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Serabi Gold PLC vs. Australian Agricultural
Performance |
| Timeline |
| Serabi Gold PLC |
| Australian Agricultural |
Serabi Gold and Australian Agricultural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Serabi Gold and Australian Agricultural
The main advantage of trading using opposite Serabi Gold and Australian Agricultural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Serabi Gold position performs unexpectedly, Australian Agricultural 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 Australian Agricultural will offset losses from the drop in Australian Agricultural's long position.| Serabi Gold vs. Monument Mining Limited | Serabi Gold vs. Goldgroup Mining | Serabi Gold vs. Liberty Gold Corp | Serabi Gold vs. Amex Exploration |
| Australian Agricultural vs. Elders Ltd ADR | Australian Agricultural vs. MHP SE | Australian Agricultural vs. Perusahaan Perkebunan London | Australian Agricultural vs. Origin Enterprises plc |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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