Correlation Between BBGI SICAV and Bankers Investment
Can any of the company-specific risk be diversified away by investing in both BBGI SICAV and Bankers 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 BBGI SICAV and Bankers Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BBGI SICAV SA and Bankers Investment Trust, you can compare the effects of market volatilities on BBGI SICAV and Bankers 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 BBGI SICAV with a short position of Bankers Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of BBGI SICAV and Bankers Investment.
Diversification Opportunities for BBGI SICAV and Bankers Investment
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BBGI and Bankers is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding BBGI SICAV SA and Bankers Investment Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bankers Investment Trust and BBGI SICAV 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 BBGI SICAV SA are associated (or correlated) with Bankers Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bankers Investment Trust has no effect on the direction of BBGI SICAV i.e., BBGI SICAV and Bankers Investment go up and down completely randomly.
Pair Corralation between BBGI SICAV and Bankers Investment
Assuming the 90 days trading horizon BBGI SICAV SA is expected to under-perform the Bankers Investment. In addition to that, BBGI SICAV is 1.45 times more volatile than Bankers Investment Trust. It trades about -0.01 of its total potential returns per unit of risk. Bankers Investment Trust is currently generating about 0.05 per unit of volatility. If you would invest 9,366 in Bankers Investment Trust on September 12, 2024 and sell it today you would earn a total of 2,214 from holding Bankers Investment Trust or generate 23.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BBGI SICAV SA vs. Bankers Investment Trust
Performance |
| Timeline |
| BBGI SICAV SA |
| Bankers Investment Trust |
BBGI SICAV and Bankers Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BBGI SICAV and Bankers Investment
The main advantage of trading using opposite BBGI SICAV and Bankers Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BBGI SICAV position performs unexpectedly, Bankers 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 Bankers Investment will offset losses from the drop in Bankers Investment's long position.| BBGI SICAV vs. Bankers Investment Trust | BBGI SICAV vs. United States Steel | BBGI SICAV vs. New Residential Investment | BBGI SICAV vs. Lowland Investment Co |
| Bankers Investment vs. Liberty Media Corp | Bankers Investment vs. Panther Metals PLC | Bankers Investment vs. Centaur Media | Bankers Investment vs. GoldMining |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |