Correlation Between Moneysupermarket and AUST AGRICULTURAL

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

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

Diversification Opportunities for Moneysupermarket and AUST AGRICULTURAL

-0.34

Correlation Coefficient

Moneysupermarket  AUST AGRICULTURAL

Very good diversification

The 3 months correlation between Moneysupermarket and AUST is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Moneysupermarket Group PLC and AUST AGRICULTURAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AUST AGRICULTURAL and Moneysupermarket 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 Moneysupermarket Group PLC are associated (or correlated) with AUST AGRICULTURAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AUST AGRICULTURAL has no effect on the direction of Moneysupermarket i.e., Moneysupermarket and AUST AGRICULTURAL go up and down completely randomly.

Pair Corralation between Moneysupermarket and AUST AGRICULTURAL

Assuming the 90 days horizon Moneysupermarket Group PLC is expected to generate 1.04 times more return on investment than AUST AGRICULTURAL. However, Moneysupermarket is 1.04 times more volatile than AUST AGRICULTURAL. It trades about 0.03 of its potential returns per unit of risk. AUST AGRICULTURAL is currently generating about -0.01 per unit of risk. If you would invest  225.00  in Moneysupermarket Group PLC on April 25, 2025 and sell it today you would earn a total of  5.00  from holding Moneysupermarket Group PLC or generate 2.22% return on investment over 90 days.

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

Moneysupermarket Group PLC  vs.  AUST AGRICULTURAL

Moneysupermarket

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Moneysupermarket Group PLC are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Moneysupermarket is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

AUST AGRICULTURAL

Risk-Adjusted Performance

Very Weak

Over the last 90 days AUST AGRICULTURAL has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, AUST AGRICULTURAL is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Moneysupermarket and AUST AGRICULTURAL

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

The idea behind Moneysupermarket Group PLC and AUST AGRICULTURAL 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.