Correlation Between Auctus Alternative and BKI Investment
Can any of the company-specific risk be diversified away by investing in both Auctus Alternative 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 Auctus Alternative and BKI Investment 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 BKI Investment, you can compare the effects of market volatilities on Auctus Alternative 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 Auctus Alternative with a short position of BKI Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Auctus Alternative and BKI Investment.
Diversification Opportunities for Auctus Alternative and BKI Investment
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Auctus and BKI is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Auctus Alternative Investments and BKI Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BKI Investment 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 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 Auctus Alternative i.e., Auctus Alternative and BKI Investment go up and down completely randomly.
Pair Corralation between Auctus Alternative and BKI Investment
Assuming the 90 days trading horizon Auctus Alternative Investments is expected to under-perform the BKI Investment. In addition to that, Auctus Alternative is 3.92 times more volatile than BKI Investment. It trades about -0.01 of its total potential returns per unit of risk. BKI Investment is currently generating about 0.02 per unit of volatility. If you would invest 162.00 in BKI Investment on August 27, 2024 and sell it today you would earn a total of 10.00 from holding BKI Investment or generate 6.17% 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. BKI Investment
Performance |
| Timeline |
| Auctus Alternative |
| BKI Investment |
Auctus Alternative and BKI Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Auctus Alternative and BKI Investment
The main advantage of trading using opposite Auctus Alternative and BKI Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Auctus Alternative 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.| Auctus Alternative vs. National Australia Bank | Auctus Alternative vs. National Australia Bank | Auctus Alternative vs. Westpac Banking | Auctus Alternative vs. National Australia Bank |
| BKI Investment vs. Australian Foundation Investment | BKI Investment vs. GQG Partners DRC | BKI Investment vs. Metrics Master Income | BKI Investment vs. L1 Long Short |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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