Correlation Between Preferred Bank and CALTAGIRONE EDITORE
Can any of the company-specific risk be diversified away by investing in both Preferred Bank and CALTAGIRONE EDITORE 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 Preferred Bank and CALTAGIRONE EDITORE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Preferred Bank and CALTAGIRONE EDITORE, you can compare the effects of market volatilities on Preferred Bank and CALTAGIRONE EDITORE 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 Preferred Bank with a short position of CALTAGIRONE EDITORE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Preferred Bank and CALTAGIRONE EDITORE.
Diversification Opportunities for Preferred Bank and CALTAGIRONE EDITORE
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Preferred and CALTAGIRONE is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Preferred Bank and CALTAGIRONE EDITORE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CALTAGIRONE EDITORE and Preferred Bank 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 Preferred Bank are associated (or correlated) with CALTAGIRONE EDITORE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CALTAGIRONE EDITORE has no effect on the direction of Preferred Bank i.e., Preferred Bank and CALTAGIRONE EDITORE go up and down completely randomly.
Pair Corralation between Preferred Bank and CALTAGIRONE EDITORE
Assuming the 90 days horizon Preferred Bank is expected to generate 2.41 times less return on investment than CALTAGIRONE EDITORE. But when comparing it to its historical volatility, Preferred Bank is 2.91 times less risky than CALTAGIRONE EDITORE. It trades about 0.2 of its potential returns per unit of risk. CALTAGIRONE EDITORE is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 132.00 in CALTAGIRONE EDITORE on November 5, 2024 and sell it today you would earn a total of 21.00 from holding CALTAGIRONE EDITORE or generate 15.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Preferred Bank vs. CALTAGIRONE EDITORE
Performance |
| Timeline |
| Preferred Bank |
| CALTAGIRONE EDITORE |
Preferred Bank and CALTAGIRONE EDITORE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Preferred Bank and CALTAGIRONE EDITORE
The main advantage of trading using opposite Preferred Bank and CALTAGIRONE EDITORE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Preferred Bank position performs unexpectedly, CALTAGIRONE EDITORE 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 CALTAGIRONE EDITORE will offset losses from the drop in CALTAGIRONE EDITORE's long position.| Preferred Bank vs. POSBO UNSPADRS20YC1 | Preferred Bank vs. Postal Savings Bank | Preferred Bank vs. Oversea Chinese Banking | Preferred Bank vs. UNICREDIT SPA ADR |
| CALTAGIRONE EDITORE vs. AWILCO DRILLING PLC | CALTAGIRONE EDITORE vs. Mitsubishi Materials | CALTAGIRONE EDITORE vs. Fidelity National Information | CALTAGIRONE EDITORE vs. Materialise NV |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Global Correlations Find global opportunities by holding instruments from different markets |