Correlation Between Auctus Alternative and BSP Financial
Can any of the company-specific risk be diversified away by investing in both Auctus Alternative and BSP 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 Auctus Alternative and BSP Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Auctus Alternative Investments and BSP Financial Group, you can compare the effects of market volatilities on Auctus Alternative and BSP 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 Auctus Alternative with a short position of BSP Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Auctus Alternative and BSP Financial.
Diversification Opportunities for Auctus Alternative and BSP Financial
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Auctus and BSP is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Auctus Alternative Investments and BSP Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BSP Financial Group and Auctus Alternative 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 Auctus Alternative Investments are associated (or correlated) with BSP Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BSP Financial Group has no effect on the direction of Auctus Alternative i.e., Auctus Alternative and BSP Financial go up and down completely randomly.
Pair Corralation between Auctus Alternative and BSP Financial
Assuming the 90 days trading horizon Auctus Alternative Investments is expected to under-perform the BSP Financial. In addition to that, Auctus Alternative is 1.81 times more volatile than BSP Financial Group. It trades about -0.01 of its total potential returns per unit of risk. BSP Financial Group is currently generating about 0.06 per unit of volatility. If you would invest 397.00 in BSP Financial Group on August 29, 2024 and sell it today you would earn a total of 253.00 from holding BSP Financial Group or generate 63.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Auctus Alternative Investments vs. BSP Financial Group
Performance |
| Timeline |
| Auctus Alternative |
| BSP Financial Group |
Auctus Alternative and BSP Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Auctus Alternative and BSP Financial
The main advantage of trading using opposite Auctus Alternative and BSP Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Auctus Alternative position performs unexpectedly, BSP 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 BSP Financial will offset losses from the drop in BSP Financial's long position.| Auctus Alternative vs. National Australia Bank | Auctus Alternative vs. National Australia Bank | Auctus Alternative vs. Westpac Banking | Auctus Alternative vs. National Australia Bank |
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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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