Correlation Between Bci Best and Centaur Bci
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By analyzing existing cross correlation between Bci Best Blend and Centaur Bci Balanced, you can compare the effects of market volatilities on Bci Best and Centaur Bci 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 Bci Best with a short position of Centaur Bci. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bci Best and Centaur Bci.
Diversification Opportunities for Bci Best and Centaur Bci
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Bci and Centaur is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Bci Best Blend and Centaur Bci Balanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Centaur Bci Balanced and Bci Best 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 Bci Best Blend are associated (or correlated) with Centaur Bci. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Centaur Bci Balanced has no effect on the direction of Bci Best i.e., Bci Best and Centaur Bci go up and down completely randomly.
Pair Corralation between Bci Best and Centaur Bci
Assuming the 90 days trading horizon Bci Best Blend is expected to generate 0.66 times more return on investment than Centaur Bci. However, Bci Best Blend is 1.51 times less risky than Centaur Bci. It trades about 0.03 of its potential returns per unit of risk. Centaur Bci Balanced is currently generating about -0.04 per unit of risk. If you would invest 149.00 in Bci Best Blend on November 6, 2024 and sell it today you would earn a total of 1.00 from holding Bci Best Blend or generate 0.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bci Best Blend vs. Centaur Bci Balanced
Performance |
| Timeline |
| Bci Best Blend |
| Centaur Bci Balanced |
Bci Best and Centaur Bci Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bci Best and Centaur Bci
The main advantage of trading using opposite Bci Best and Centaur Bci positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bci Best position performs unexpectedly, Centaur Bci 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 Centaur Bci will offset losses from the drop in Centaur Bci's long position.| Bci Best vs. Sasol Ltd Bee | Bci Best vs. Sabvest Capital | Bci Best vs. Growthpoint Properties | Bci Best vs. Coronation Global Equity |
| Centaur Bci vs. Sasol Ltd Bee | Centaur Bci vs. Sabvest Capital | Centaur Bci vs. Growthpoint Properties | Centaur Bci vs. Coronation Global Equity |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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