Correlation Between Albion Technology and Bankers Investment
Can any of the company-specific risk be diversified away by investing in both Albion Technology and Bankers 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 Albion Technology and Bankers Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Albion Technology General and Bankers Investment Trust, you can compare the effects of market volatilities on Albion Technology and Bankers 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 Albion Technology with a short position of Bankers Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Albion Technology and Bankers Investment.
Diversification Opportunities for Albion Technology and Bankers Investment
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Albion and Bankers is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Albion Technology General and Bankers Investment Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bankers Investment Trust and Albion Technology 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 Albion Technology General are associated (or correlated) with Bankers Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bankers Investment Trust has no effect on the direction of Albion Technology i.e., Albion Technology and Bankers Investment go up and down completely randomly.
Pair Corralation between Albion Technology and Bankers Investment
Assuming the 90 days trading horizon Albion Technology is expected to generate 1.43 times less return on investment than Bankers Investment. But when comparing it to its historical volatility, Albion Technology General is 1.33 times less risky than Bankers Investment. It trades about 0.02 of its potential returns per unit of risk. Bankers Investment Trust is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 9,985 in Bankers Investment Trust on January 23, 2025 and sell it today you would earn a total of 575.00 from holding Bankers Investment Trust or generate 5.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Albion Technology General vs. Bankers Investment Trust
Performance |
| Timeline |
| Albion Technology General |
| Bankers Investment Trust |
Albion Technology and Bankers Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Albion Technology and Bankers Investment
The main advantage of trading using opposite Albion Technology and Bankers Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Albion Technology position performs unexpectedly, Bankers 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 Bankers Investment will offset losses from the drop in Bankers Investment's long position.| Albion Technology vs. Datalogic | Albion Technology vs. CleanTech Lithium plc | Albion Technology vs. Ecclesiastical Insurance Office | Albion Technology vs. American Homes 4 |
| Bankers Investment vs. Brunner Investment Trust | Bankers Investment vs. Schroder Asian Alpha | Bankers Investment vs. Artemisome I | Bankers Investment vs. iShares Continental European |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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