Correlation Between BNK Financial and Cuckoo Homesys
Can any of the company-specific risk be diversified away by investing in both BNK Financial and Cuckoo Homesys 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 Cuckoo Homesys 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 Cuckoo Homesys Co, you can compare the effects of market volatilities on BNK Financial and Cuckoo Homesys 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 Cuckoo Homesys. Check out your portfolio center. Please also check ongoing floating volatility patterns of BNK Financial and Cuckoo Homesys.
Diversification Opportunities for BNK Financial and Cuckoo Homesys
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BNK and Cuckoo is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding BNK Financial Group and Cuckoo Homesys Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cuckoo Homesys 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 Cuckoo Homesys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cuckoo Homesys has no effect on the direction of BNK Financial i.e., BNK Financial and Cuckoo Homesys go up and down completely randomly.
Pair Corralation between BNK Financial and Cuckoo Homesys
Assuming the 90 days trading horizon BNK Financial Group is expected to generate 1.12 times more return on investment than Cuckoo Homesys. However, BNK Financial is 1.12 times more volatile than Cuckoo Homesys Co. It trades about 0.14 of its potential returns per unit of risk. Cuckoo Homesys Co is currently generating about -0.01 per unit of risk. If you would invest 659,528 in BNK Financial Group on September 4, 2024 and sell it today you would earn a total of 528,472 from holding BNK Financial Group or generate 80.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BNK Financial Group vs. Cuckoo Homesys Co
Performance |
| Timeline |
| BNK Financial Group |
| Cuckoo Homesys |
BNK Financial and Cuckoo Homesys Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BNK Financial and Cuckoo Homesys
The main advantage of trading using opposite BNK Financial and Cuckoo Homesys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BNK Financial position performs unexpectedly, Cuckoo Homesys 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 Cuckoo Homesys will offset losses from the drop in Cuckoo Homesys' long position.| BNK Financial vs. Dongjin Semichem Co | BNK Financial vs. AhnLab Inc | BNK Financial vs. Posco ICT | BNK Financial vs. CJ ENM |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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