Correlation Between Baraboo Bancorporation and Bank Central
Can any of the company-specific risk be diversified away by investing in both Baraboo Bancorporation and Bank Central 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 Baraboo Bancorporation and Bank Central into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Baraboo Bancorporation and Bank Central Asia, you can compare the effects of market volatilities on Baraboo Bancorporation and Bank Central 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 Baraboo Bancorporation with a short position of Bank Central. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baraboo Bancorporation and Bank Central.
Diversification Opportunities for Baraboo Bancorporation and Bank Central
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Baraboo and Bank is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Baraboo Bancorp. and Bank Central Asia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Central Asia and Baraboo Bancorporation 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 Baraboo Bancorporation are associated (or correlated) with Bank Central. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Central Asia has no effect on the direction of Baraboo Bancorporation i.e., Baraboo Bancorporation and Bank Central go up and down completely randomly.
Pair Corralation between Baraboo Bancorporation and Bank Central
Given the investment horizon of 90 days Baraboo Bancorporation is expected to generate 1.11 times more return on investment than Bank Central. However, Baraboo Bancorporation is 1.11 times more volatile than Bank Central Asia. It trades about 0.06 of its potential returns per unit of risk. Bank Central Asia is currently generating about 0.05 per unit of risk. If you would invest 298.00 in Baraboo Bancorporation on September 1, 2024 and sell it today you would earn a total of 32.00 from holding Baraboo Bancorporation or generate 10.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 96.83% |
| Values | Daily Returns |
Baraboo Bancorp. vs. Bank Central Asia
Performance |
| Timeline |
| Baraboo Bancorporation |
| Bank Central Asia |
Baraboo Bancorporation and Bank Central Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baraboo Bancorporation and Bank Central
The main advantage of trading using opposite Baraboo Bancorporation and Bank Central positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baraboo Bancorporation position performs unexpectedly, Bank Central 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 Bank Central will offset losses from the drop in Bank Central's long position.| Baraboo Bancorporation vs. Piraeus Bank SA | Baraboo Bancorporation vs. Turkiye Garanti Bankasi | Baraboo Bancorporation vs. Delhi Bank Corp | Baraboo Bancorporation vs. Uwharrie Capital Corp |
| Bank Central vs. Piraeus Bank SA | Bank Central vs. Turkiye Garanti Bankasi | Bank Central vs. Delhi Bank Corp | Bank Central vs. Uwharrie Capital Corp |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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