Correlation Between BNK Financial and Wireless Power
Can any of the company-specific risk be diversified away by investing in both BNK Financial and Wireless Power 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 Wireless Power 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 Wireless Power Amplifier, you can compare the effects of market volatilities on BNK Financial and Wireless Power 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 Wireless Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of BNK Financial and Wireless Power.
Diversification Opportunities for BNK Financial and Wireless Power
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BNK and Wireless is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding BNK Financial Group and Wireless Power Amplifier in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wireless Power Amplifier 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 Wireless Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wireless Power Amplifier has no effect on the direction of BNK Financial i.e., BNK Financial and Wireless Power go up and down completely randomly.
Pair Corralation between BNK Financial and Wireless Power
Assuming the 90 days trading horizon BNK Financial is expected to generate 4.94 times less return on investment than Wireless Power. But when comparing it to its historical volatility, BNK Financial Group is 2.36 times less risky than Wireless Power. It trades about 0.14 of its potential returns per unit of risk. Wireless Power Amplifier is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 223,000 in Wireless Power Amplifier on October 30, 2024 and sell it today you would earn a total of 179,000 from holding Wireless Power Amplifier or generate 80.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BNK Financial Group vs. Wireless Power Amplifier
Performance |
| Timeline |
| BNK Financial Group |
| Wireless Power Amplifier |
BNK Financial and Wireless Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BNK Financial and Wireless Power
The main advantage of trading using opposite BNK Financial and Wireless Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BNK Financial position performs unexpectedly, Wireless Power 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 Wireless Power will offset losses from the drop in Wireless Power's long position.| BNK Financial vs. Koryo Credit Information | BNK Financial vs. YeaRimDang Publishing Co | BNK Financial vs. DataSolution | BNK Financial vs. Dongbang Transport Logistics |
| Wireless Power vs. Cube Entertainment | Wireless Power vs. Jeju Beer Co | Wireless Power vs. Foodnamoo | Wireless Power vs. FOODWELL 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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