Correlation Between AECOM TECHNOLOGY and CSL

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

By analyzing existing cross correlation between AECOM TECHNOLOGY and CSL LTD SPONADR, you can compare the effects of market volatilities on AECOM TECHNOLOGY and CSL 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 AECOM TECHNOLOGY with a short position of CSL. Check out your portfolio center. Please also check ongoing floating volatility patterns of AECOM TECHNOLOGY and CSL.

Diversification Opportunities for AECOM TECHNOLOGY and CSL

0.51

Correlation Coefficient

AECOM TECHNOLOGY  CSL

Very weak diversification

The 3 months correlation between AECOM and CSL is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding AECOM TECHNOLOGY and CSL LTD SPONADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSL LTD SPONADR and AECOM TECHNOLOGY 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 AECOM TECHNOLOGY are associated (or correlated) with CSL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSL LTD SPONADR has no effect on the direction of AECOM TECHNOLOGY i.e., AECOM TECHNOLOGY and CSL go up and down completely randomly.

Pair Corralation between AECOM TECHNOLOGY and CSL

Assuming the 90 days trading horizon AECOM TECHNOLOGY is expected to generate 1.1 times less return on investment than CSL. In addition to that, AECOM TECHNOLOGY is 1.05 times more volatile than CSL LTD SPONADR. It trades about 0.07 of its total potential returns per unit of risk. CSL LTD SPONADR is currently generating about 0.09 per unit of volatility. If you would invest  6,850  in CSL LTD SPONADR on May 20, 2025 and sell it today you would earn a total of  500.00  from holding CSL LTD SPONADR or generate 7.3% return on investment over 90 days.

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

AECOM TECHNOLOGY  vs.  CSL LTD SPONADR

AECOM TECHNOLOGY

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in AECOM TECHNOLOGY are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile basic indicators, AECOM TECHNOLOGY may actually be approaching a critical reversion point that can send shares even higher in September 2025.

CSL LTD SPONADR

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in CSL LTD SPONADR are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile forward-looking indicators, CSL may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with AECOM TECHNOLOGY and CSL

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

The idea behind AECOM TECHNOLOGY and CSL LTD SPONADR 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.