Correlation Between A1 Investments and BNK Banking
Can any of the company-specific risk be diversified away by investing in both A1 Investments and BNK Banking 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 A1 Investments and BNK Banking into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between A1 Investments Resources and BNK Banking, you can compare the effects of market volatilities on A1 Investments and BNK Banking 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 A1 Investments with a short position of BNK Banking. Check out your portfolio center. Please also check ongoing floating volatility patterns of A1 Investments and BNK Banking.
Diversification Opportunities for A1 Investments and BNK Banking
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AYI and BNK is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding A1 Investments Resources and BNK Banking in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BNK Banking and A1 Investments 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 A1 Investments Resources are associated (or correlated) with BNK Banking. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BNK Banking has no effect on the direction of A1 Investments i.e., A1 Investments and BNK Banking go up and down completely randomly.
Pair Corralation between A1 Investments and BNK Banking
If you would invest 0.10 in A1 Investments Resources on October 23, 2024 and sell it today you would earn a total of 0.00 from holding A1 Investments Resources or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
A1 Investments Resources vs. BNK Banking
Performance |
| Timeline |
| A1 Investments Resources |
| BNK Banking |
A1 Investments and BNK Banking Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with A1 Investments and BNK Banking
The main advantage of trading using opposite A1 Investments and BNK Banking positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if A1 Investments position performs unexpectedly, BNK Banking 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 BNK Banking will offset losses from the drop in BNK Banking's long position.| A1 Investments vs. oOhMedia | A1 Investments vs. Kalgoorlie Gold Mining | A1 Investments vs. Andean Silver Limited | A1 Investments vs. ARN Media Limited |
| BNK Banking vs. Energy Resources | BNK Banking vs. 88 Energy | BNK Banking vs. A1 Investments Resources | BNK Banking vs. Coronado Global Resources |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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