Correlation Between Actinogen Medical and BKI Investment
Can any of the company-specific risk be diversified away by investing in both Actinogen Medical and BKI 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 Actinogen Medical and BKI Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Actinogen Medical and BKI Investment, you can compare the effects of market volatilities on Actinogen Medical and BKI 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 Actinogen Medical with a short position of BKI Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Actinogen Medical and BKI Investment.
Diversification Opportunities for Actinogen Medical and BKI Investment
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Actinogen and BKI is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Actinogen Medical and BKI Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BKI Investment and Actinogen Medical 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 Actinogen Medical are associated (or correlated) with BKI Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BKI Investment has no effect on the direction of Actinogen Medical i.e., Actinogen Medical and BKI Investment go up and down completely randomly.
Pair Corralation between Actinogen Medical and BKI Investment
Assuming the 90 days trading horizon Actinogen Medical is expected to generate 9.82 times more return on investment than BKI Investment. However, Actinogen Medical is 9.82 times more volatile than BKI Investment. It trades about 0.02 of its potential returns per unit of risk. BKI Investment is currently generating about 0.02 per unit of risk. If you would invest 7.01 in Actinogen Medical on November 27, 2024 and sell it today you would lose (3.31) from holding Actinogen Medical or give up 47.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Actinogen Medical vs. BKI Investment
Performance |
| Timeline |
| Actinogen Medical |
| BKI Investment |
Actinogen Medical and BKI Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Actinogen Medical and BKI Investment
The main advantage of trading using opposite Actinogen Medical and BKI Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Actinogen Medical position performs unexpectedly, BKI 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 BKI Investment will offset losses from the drop in BKI Investment's long position.| Actinogen Medical vs. Sonic Healthcare | Actinogen Medical vs. Bisalloy Steel Group | Actinogen Medical vs. Global Health | Actinogen Medical vs. Tombador Iron |
| BKI Investment vs. Cleanspace Holdings | BKI Investment vs. My Foodie Box | BKI Investment vs. Technology One | BKI Investment vs. Complii FinTech Solutions |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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