Correlation Between Benguet Corp and Bright Kindle
Can any of the company-specific risk be diversified away by investing in both Benguet Corp and Bright Kindle 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 Benguet Corp and Bright Kindle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Benguet Corp A and Bright Kindle Resources, you can compare the effects of market volatilities on Benguet Corp and Bright Kindle 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 Benguet Corp with a short position of Bright Kindle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Benguet Corp and Bright Kindle.
Diversification Opportunities for Benguet Corp and Bright Kindle
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Benguet and Bright is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Benguet Corp A and Bright Kindle Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bright Kindle Resources and Benguet Corp 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 Benguet Corp A are associated (or correlated) with Bright Kindle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bright Kindle Resources has no effect on the direction of Benguet Corp i.e., Benguet Corp and Bright Kindle go up and down completely randomly.
Pair Corralation between Benguet Corp and Bright Kindle
Assuming the 90 days trading horizon Benguet Corp A is expected to generate 0.67 times more return on investment than Bright Kindle. However, Benguet Corp A is 1.5 times less risky than Bright Kindle. It trades about 0.0 of its potential returns per unit of risk. Bright Kindle Resources is currently generating about -0.01 per unit of risk. If you would invest 403.00 in Benguet Corp A on September 3, 2024 and sell it today you would lose (53.00) from holding Benguet Corp A or give up 13.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.07% |
| Values | Daily Returns |
Benguet Corp A vs. Bright Kindle Resources
Performance |
| Timeline |
| Benguet Corp A |
| Bright Kindle Resources |
Benguet Corp and Bright Kindle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Benguet Corp and Bright Kindle
The main advantage of trading using opposite Benguet Corp and Bright Kindle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Benguet Corp position performs unexpectedly, Bright Kindle 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 Bright Kindle will offset losses from the drop in Bright Kindle's long position.| Benguet Corp vs. Apex Mining Co | Benguet Corp vs. Suntrust Home Developers | Benguet Corp vs. Converge Information Communications | Benguet Corp vs. Semirara Mining Corp |
| Bright Kindle vs. GT Capital Holdings | Bright Kindle vs. Allhome Corp | Bright Kindle vs. Jollibee Foods Corp | Bright Kindle vs. LFM Properties 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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