Correlation Between Bendigo and Clime Investment
Can any of the company-specific risk be diversified away by investing in both Bendigo and Clime 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 Bendigo and Clime Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bendigo and Adelaide and Clime Investment Management, you can compare the effects of market volatilities on Bendigo and Clime 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 Bendigo with a short position of Clime Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bendigo and Clime Investment.
Diversification Opportunities for Bendigo and Clime Investment
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bendigo and Clime is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Bendigo and Adelaide and Clime Investment Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clime Investment Man and Bendigo 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 Bendigo and Adelaide are associated (or correlated) with Clime Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clime Investment Man has no effect on the direction of Bendigo i.e., Bendigo and Clime Investment go up and down completely randomly.
Pair Corralation between Bendigo and Clime Investment
If you would invest 36.00 in Clime Investment Management on October 23, 2024 and sell it today you would earn a total of 0.00 from holding Clime Investment Management or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
Bendigo and Adelaide vs. Clime Investment Management
Performance |
| Timeline |
| Bendigo and Adelaide |
| Clime Investment Man |
Bendigo and Clime Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bendigo and Clime Investment
The main advantage of trading using opposite Bendigo and Clime Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bendigo position performs unexpectedly, Clime 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 Clime Investment will offset losses from the drop in Clime Investment's long position.| Bendigo vs. Sayona Mining | Bendigo vs. Treasury Wine Estates | Bendigo vs. Super Retail Group | Bendigo vs. Evolution Mining |
| Clime Investment vs. Aneka Tambang Tbk | Clime Investment vs. Commonwealth Bank of | Clime Investment vs. Australia and New | Clime Investment vs. ANZ Group Holdings |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |