Correlation Between Cuckoo Homesys and BNK Financial
Can any of the company-specific risk be diversified away by investing in both Cuckoo Homesys and BNK Financial 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 Cuckoo Homesys and BNK Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cuckoo Homesys Co and BNK Financial Group, you can compare the effects of market volatilities on Cuckoo Homesys and BNK Financial 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 Cuckoo Homesys with a short position of BNK Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cuckoo Homesys and BNK Financial.
Diversification Opportunities for Cuckoo Homesys and BNK Financial
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cuckoo and BNK is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Cuckoo Homesys Co and BNK Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BNK Financial Group and Cuckoo Homesys 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 Cuckoo Homesys Co are associated (or correlated) with BNK Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BNK Financial Group has no effect on the direction of Cuckoo Homesys i.e., Cuckoo Homesys and BNK Financial go up and down completely randomly.
Pair Corralation between Cuckoo Homesys and BNK Financial
Assuming the 90 days trading horizon Cuckoo Homesys Co is expected to under-perform the BNK Financial. But the stock apears to be less risky and, when comparing its historical volatility, Cuckoo Homesys Co is 1.12 times less risky than BNK Financial. The stock trades about -0.01 of its potential returns per unit of risk. The BNK Financial Group is currently generating about 0.14 of returns per unit of risk over similar time horizon. 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 |
Cuckoo Homesys Co vs. BNK Financial Group
Performance |
| Timeline |
| Cuckoo Homesys |
| BNK Financial Group |
Cuckoo Homesys and BNK Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cuckoo Homesys and BNK Financial
The main advantage of trading using opposite Cuckoo Homesys and BNK Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cuckoo Homesys position performs unexpectedly, BNK Financial 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 BNK Financial will offset losses from the drop in BNK Financial's long position.| Cuckoo Homesys vs. LG Uplus | Cuckoo Homesys vs. AnterogenCoLtd | Cuckoo Homesys vs. ASTORY CoLtd | Cuckoo Homesys vs. Industrial Bank |
| BNK Financial vs. Dongjin Semichem Co | BNK Financial vs. AhnLab Inc | BNK Financial vs. Posco ICT | BNK Financial vs. CJ ENM |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |