Correlation Between BIT Computer and Showbox Corp
Can any of the company-specific risk be diversified away by investing in both BIT Computer and Showbox Corp 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 BIT Computer and Showbox Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BIT Computer Co and Showbox Corp, you can compare the effects of market volatilities on BIT Computer and Showbox Corp 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 BIT Computer with a short position of Showbox Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of BIT Computer and Showbox Corp.
Diversification Opportunities for BIT Computer and Showbox Corp
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BIT and Showbox is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding BIT Computer Co and Showbox Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Showbox Corp and BIT Computer 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 BIT Computer Co are associated (or correlated) with Showbox Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Showbox Corp has no effect on the direction of BIT Computer i.e., BIT Computer and Showbox Corp go up and down completely randomly.
Pair Corralation between BIT Computer and Showbox Corp
Assuming the 90 days trading horizon BIT Computer Co is expected to under-perform the Showbox Corp. In addition to that, BIT Computer is 1.19 times more volatile than Showbox Corp. It trades about 0.0 of its total potential returns per unit of risk. Showbox Corp is currently generating about 0.03 per unit of volatility. If you would invest 367,500 in Showbox Corp on September 3, 2024 and sell it today you would earn a total of 61,500 from holding Showbox Corp or generate 16.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BIT Computer Co vs. Showbox Corp
Performance |
| Timeline |
| BIT Computer |
| Showbox Corp |
BIT Computer and Showbox Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BIT Computer and Showbox Corp
The main advantage of trading using opposite BIT Computer and Showbox Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BIT Computer position performs unexpectedly, Showbox Corp 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 Showbox Corp will offset losses from the drop in Showbox Corp's long position.| BIT Computer vs. CKH Food Health | BIT Computer vs. Polaris Office Corp | BIT Computer vs. Cuckoo Homesys Co | BIT Computer vs. Samlip General Foods |
| Showbox Corp vs. Daejung Chemicals Metals | Showbox Corp vs. Miwon Chemicals Co | Showbox Corp vs. Hwangkum Steel Technology | Showbox Corp vs. Kbi Metal Co |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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