Correlation Between B Communications and Bull Trading
Can any of the company-specific risk be diversified away by investing in both B Communications and Bull Trading 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 B Communications and Bull Trading into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between B Communications and Bull Trading And, you can compare the effects of market volatilities on B Communications and Bull Trading 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 B Communications with a short position of Bull Trading. Check out your portfolio center. Please also check ongoing floating volatility patterns of B Communications and Bull Trading.
Diversification Opportunities for B Communications and Bull Trading
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BCOM and Bull is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding B Communications and Bull Trading And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bull Trading And and B Communications 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 B Communications are associated (or correlated) with Bull Trading. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bull Trading And has no effect on the direction of B Communications i.e., B Communications and Bull Trading go up and down completely randomly.
Pair Corralation between B Communications and Bull Trading
Assuming the 90 days trading horizon B Communications is expected to generate 0.81 times more return on investment than Bull Trading. However, B Communications is 1.24 times less risky than Bull Trading. It trades about 0.39 of its potential returns per unit of risk. Bull Trading And is currently generating about -0.22 per unit of risk. If you would invest 130,000 in B Communications on August 29, 2024 and sell it today you would earn a total of 38,100 from holding B Communications or generate 29.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
B Communications vs. Bull Trading And
Performance |
| Timeline |
| B Communications |
| Bull Trading And |
B Communications and Bull Trading Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with B Communications and Bull Trading
The main advantage of trading using opposite B Communications and Bull Trading positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if B Communications position performs unexpectedly, Bull Trading 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 Bull Trading will offset losses from the drop in Bull Trading's long position.| B Communications vs. Bezeq Israeli Telecommunication | B Communications vs. Tower Semiconductor | B Communications vs. Israel Discount Bank | B Communications vs. Holmes Place International |
| Bull Trading vs. Menif Financial Services | Bull Trading vs. Blender Financial Technologies | Bull Trading vs. Opal Balance | Bull Trading vs. B Communications |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |