Correlation Between Centaur Bci and Bid
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By analyzing existing cross correlation between Centaur Bci Balanced and Bid Corporation, you can compare the effects of market volatilities on Centaur Bci and Bid 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 Centaur Bci with a short position of Bid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Centaur Bci and Bid.
Diversification Opportunities for Centaur Bci and Bid
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Centaur and Bid is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Centaur Bci Balanced and Bid Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bid Corporation and Centaur Bci 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 Centaur Bci Balanced are associated (or correlated) with Bid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bid Corporation has no effect on the direction of Centaur Bci i.e., Centaur Bci and Bid go up and down completely randomly.
Pair Corralation between Centaur Bci and Bid
Assuming the 90 days trading horizon Centaur Bci Balanced is expected to generate 0.38 times more return on investment than Bid. However, Centaur Bci Balanced is 2.64 times less risky than Bid. It trades about 0.11 of its potential returns per unit of risk. Bid Corporation is currently generating about 0.02 per unit of risk. If you would invest 196.00 in Centaur Bci Balanced on September 1, 2024 and sell it today you would earn a total of 45.00 from holding Centaur Bci Balanced or generate 22.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.19% |
| Values | Daily Returns |
Centaur Bci Balanced vs. Bid Corp.
Performance |
| Timeline |
| Centaur Bci Balanced |
| Bid Corporation |
Centaur Bci and Bid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Centaur Bci and Bid
The main advantage of trading using opposite Centaur Bci and Bid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Centaur Bci position performs unexpectedly, Bid 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 Bid will offset losses from the drop in Bid's long position.| Centaur Bci vs. 4d Bci Moderate | Centaur Bci vs. Coronation Global Optimum | Centaur Bci vs. Absa Multi managed Absolute | Centaur Bci vs. Coronation Balanced Plus |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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