Correlation Between Avita Medical and Southern Cross

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

By analyzing existing cross correlation between Avita Medical and Southern Cross Media, you can compare the effects of market volatilities on Avita Medical and Southern Cross 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 Avita Medical with a short position of Southern Cross. Check out your portfolio center. Please also check ongoing floating volatility patterns of Avita Medical and Southern Cross.

Diversification Opportunities for Avita Medical and Southern Cross

0.58

Correlation Coefficient

Avita Medical  Southern Cross

Very weak diversification

The 3 months correlation between Avita and Southern is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Avita Medical and Southern Cross Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Southern Cross Media and Avita Medical 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 Avita Medical are associated (or correlated) with Southern Cross. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Southern Cross Media has no effect on the direction of Avita Medical i.e., Avita Medical and Southern Cross go up and down completely randomly.

Pair Corralation between Avita Medical and Southern Cross

Assuming the 90 days trading horizon Avita Medical is expected to under-perform the Southern Cross. In addition to that, Avita Medical is 1.32 times more volatile than Southern Cross Media. It trades about -0.16 of its total potential returns per unit of risk. Southern Cross Media is currently generating about -0.06 per unit of volatility. If you would invest  68.00  in Southern Cross Media on April 25, 2025 and sell it today you would lose (9.00) from holding Southern Cross Media or give up 13.24% of portfolio value over 90 days.

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

Avita Medical  vs.  Southern Cross Media

Avita Medical

Risk-Adjusted Performance

Very Weak

Over the last 90 days Avita Medical has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's technical indicators remain comparatively stable which may send shares a bit higher in August 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Southern Cross Media

Risk-Adjusted Performance

Very Weak

Over the last 90 days Southern Cross Media has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's essential indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Avita Medical and Southern Cross

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

The idea behind Avita Medical and Southern Cross Media 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.