Correlation Between BNK Financial and E Investment
Can any of the company-specific risk be diversified away by investing in both BNK Financial and E Investment 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 BNK Financial and E Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BNK Financial Group and E Investment Development, you can compare the effects of market volatilities on BNK Financial and E Investment 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 BNK Financial with a short position of E Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of BNK Financial and E Investment.
Diversification Opportunities for BNK Financial and E Investment
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BNK and 093230 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BNK Financial Group and E Investment Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on E Investment Development and BNK Financial 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 BNK Financial Group are associated (or correlated) with E Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of E Investment Development has no effect on the direction of BNK Financial i.e., BNK Financial and E Investment go up and down completely randomly.
Pair Corralation between BNK Financial and E Investment
If you would invest 1,063,000 in BNK Financial Group on October 23, 2024 and sell it today you would earn a total of 84,000 from holding BNK Financial Group or generate 7.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BNK Financial Group vs. E Investment Development
Performance |
| Timeline |
| BNK Financial Group |
| E Investment Development |
BNK Financial and E Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BNK Financial and E Investment
The main advantage of trading using opposite BNK Financial and E Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BNK Financial position performs unexpectedly, E Investment 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 E Investment will offset losses from the drop in E Investment's long position.| BNK Financial vs. Samwha Electronics Co | BNK Financial vs. Seoul Electronics Telecom | BNK Financial vs. Inzi Display CoLtd | BNK Financial vs. Daesung Hi Tech Co |
| E Investment vs. Shinil Electronics Co | E Investment vs. Samyang Foods Co | E Investment vs. Vissem Electronics Co | E Investment vs. Hannong Chemicals |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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