Correlation Between BAIGAI and Bankinvest USA
Can any of the company-specific risk be diversified away by investing in both BAIGAI and Bankinvest USA 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 BAIGAI and Bankinvest USA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Investeringsforeningen Bankinvest and Bankinvest USA, you can compare the effects of market volatilities on BAIGAI and Bankinvest USA 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 BAIGAI with a short position of Bankinvest USA. Check out your portfolio center. Please also check ongoing floating volatility patterns of BAIGAI and Bankinvest USA.
Diversification Opportunities for BAIGAI and Bankinvest USA
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BAIGAI and Bankinvest is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Investeringsforeningen Bankinv and Bankinvest USA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bankinvest USA and BAIGAI 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 Investeringsforeningen Bankinvest are associated (or correlated) with Bankinvest USA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bankinvest USA has no effect on the direction of BAIGAI i.e., BAIGAI and Bankinvest USA go up and down completely randomly.
Pair Corralation between BAIGAI and Bankinvest USA
If you would invest 11,126 in Investeringsforeningen Bankinvest on August 29, 2024 and sell it today you would earn a total of 3,359 from holding Investeringsforeningen Bankinvest or generate 30.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Investeringsforeningen Bankinv vs. Bankinvest USA
Performance |
| Timeline |
| Investeringsforeningen |
| Bankinvest USA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
BAIGAI and Bankinvest USA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BAIGAI and Bankinvest USA
The main advantage of trading using opposite BAIGAI and Bankinvest USA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BAIGAI position performs unexpectedly, Bankinvest USA 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 Bankinvest USA will offset losses from the drop in Bankinvest USA's long position.| BAIGAI vs. Sparinvest Lange | BAIGAI vs. Investeringsforeningen Danske Invest | BAIGAI vs. Sparinv SICAV | BAIGAI vs. Sparinvest Value Emerging |
| Bankinvest USA vs. Sparinvest Lange | Bankinvest USA vs. Investeringsforeningen Danske Invest | Bankinvest USA vs. Sparinv SICAV |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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