Correlation Between Bannerman Resources and CHINA TONTINE
Can any of the company-specific risk be diversified away by investing in both Bannerman Resources and CHINA TONTINE 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 Bannerman Resources and CHINA TONTINE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bannerman Resources Limited and CHINA TONTINE WINES, you can compare the effects of market volatilities on Bannerman Resources and CHINA TONTINE 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 Bannerman Resources with a short position of CHINA TONTINE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bannerman Resources and CHINA TONTINE.
Diversification Opportunities for Bannerman Resources and CHINA TONTINE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bannerman and CHINA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bannerman Resources Limited and CHINA TONTINE WINES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHINA TONTINE WINES and Bannerman Resources 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 Bannerman Resources Limited are associated (or correlated) with CHINA TONTINE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHINA TONTINE WINES has no effect on the direction of Bannerman Resources i.e., Bannerman Resources and CHINA TONTINE go up and down completely randomly.
Pair Corralation between Bannerman Resources and CHINA TONTINE
If you would invest 133.00 in Bannerman Resources Limited on November 2, 2024 and sell it today you would earn a total of 37.00 from holding Bannerman Resources Limited or generate 27.82% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Bannerman Resources Limited vs. CHINA TONTINE WINES
Performance |
Timeline |
Bannerman Resources |
CHINA TONTINE WINES |
Bannerman Resources and CHINA TONTINE Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bannerman Resources and CHINA TONTINE
The main advantage of trading using opposite Bannerman Resources and CHINA TONTINE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bannerman Resources position performs unexpectedly, CHINA TONTINE 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 CHINA TONTINE will offset losses from the drop in CHINA TONTINE's long position.Bannerman Resources vs. JSC National Atomic | Bannerman Resources vs. NexGen Energy | Bannerman Resources vs. Anfield Resources | Bannerman Resources vs. APPIA RARE EARTHU |
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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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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