Correlation Between Bisalloy Steel and ImExHS
Can any of the company-specific risk be diversified away by investing in both Bisalloy Steel and ImExHS 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 Bisalloy Steel and ImExHS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bisalloy Steel Group and ImExHS, you can compare the effects of market volatilities on Bisalloy Steel and ImExHS 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 Bisalloy Steel with a short position of ImExHS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bisalloy Steel and ImExHS.
Diversification Opportunities for Bisalloy Steel and ImExHS
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bisalloy and ImExHS is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Bisalloy Steel Group and ImExHS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ImExHS and Bisalloy Steel 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 Bisalloy Steel Group are associated (or correlated) with ImExHS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ImExHS has no effect on the direction of Bisalloy Steel i.e., Bisalloy Steel and ImExHS go up and down completely randomly.
Pair Corralation between Bisalloy Steel and ImExHS
If you would invest 309.00 in Bisalloy Steel Group on August 28, 2024 and sell it today you would earn a total of 72.00 from holding Bisalloy Steel Group or generate 23.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Bisalloy Steel Group vs. ImExHS
Performance |
| Timeline |
| Bisalloy Steel Group |
| ImExHS |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bisalloy Steel and ImExHS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bisalloy Steel and ImExHS
The main advantage of trading using opposite Bisalloy Steel and ImExHS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bisalloy Steel position performs unexpectedly, ImExHS 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 ImExHS will offset losses from the drop in ImExHS's long position.| Bisalloy Steel vs. Pinnacle Investment Management | Bisalloy Steel vs. WiseTech Global Limited | Bisalloy Steel vs. Richmond Vanadium Technology | Bisalloy Steel vs. Regal Investment |
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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 Stocks Directory module to find actively traded stocks across global markets.
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