Correlation Between Ally Leasehold and BPS TECHNOLOGY
Can any of the company-specific risk be diversified away by investing in both Ally Leasehold and BPS TECHNOLOGY 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 Ally Leasehold and BPS TECHNOLOGY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ally Leasehold Real and BPS TECHNOLOGY PUBLIC, you can compare the effects of market volatilities on Ally Leasehold and BPS TECHNOLOGY 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 Ally Leasehold with a short position of BPS TECHNOLOGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ally Leasehold and BPS TECHNOLOGY.
Diversification Opportunities for Ally Leasehold and BPS TECHNOLOGY
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ally and BPS is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Ally Leasehold Real and BPS TECHNOLOGY PUBLIC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BPS TECHNOLOGY PUBLIC and Ally Leasehold 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 Ally Leasehold Real are associated (or correlated) with BPS TECHNOLOGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BPS TECHNOLOGY PUBLIC has no effect on the direction of Ally Leasehold i.e., Ally Leasehold and BPS TECHNOLOGY go up and down completely randomly.
Pair Corralation between Ally Leasehold and BPS TECHNOLOGY
Assuming the 90 days trading horizon Ally Leasehold Real is expected to generate 0.3 times more return on investment than BPS TECHNOLOGY. However, Ally Leasehold Real is 3.3 times less risky than BPS TECHNOLOGY. It trades about 0.08 of its potential returns per unit of risk. BPS TECHNOLOGY PUBLIC is currently generating about -0.03 per unit of risk. If you would invest 525.00 in Ally Leasehold Real on October 7, 2024 and sell it today you would earn a total of 10.00 from holding Ally Leasehold Real or generate 1.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ally Leasehold Real vs. BPS TECHNOLOGY PUBLIC
Performance |
| Timeline |
| Ally Leasehold Real |
| BPS TECHNOLOGY PUBLIC |
Ally Leasehold and BPS TECHNOLOGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ally Leasehold and BPS TECHNOLOGY
The main advantage of trading using opposite Ally Leasehold and BPS TECHNOLOGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ally Leasehold position performs unexpectedly, BPS TECHNOLOGY 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 BPS TECHNOLOGY will offset losses from the drop in BPS TECHNOLOGY's long position.| Ally Leasehold vs. AIM Industrial Growth | Ally Leasehold vs. Dusit Thani Freehold | Ally Leasehold vs. CPN Retail Growth | Ally Leasehold vs. Amata Summit Growth |
| BPS TECHNOLOGY vs. The Navakij Insurance | BPS TECHNOLOGY vs. Taokaenoi Food Marketing | BPS TECHNOLOGY vs. Tipco Foods Public | BPS TECHNOLOGY vs. Surapon Foods Public |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |