Correlation Between Bisichi Mining and Ithaca Energy
Can any of the company-specific risk be diversified away by investing in both Bisichi Mining and Ithaca Energy 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 Bisichi Mining and Ithaca Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bisichi Mining PLC and Ithaca Energy PLC, you can compare the effects of market volatilities on Bisichi Mining and Ithaca Energy 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 Bisichi Mining with a short position of Ithaca Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bisichi Mining and Ithaca Energy.
Diversification Opportunities for Bisichi Mining and Ithaca Energy
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bisichi and Ithaca is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Bisichi Mining PLC and Ithaca Energy PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ithaca Energy PLC and Bisichi Mining 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 Bisichi Mining PLC are associated (or correlated) with Ithaca Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ithaca Energy PLC has no effect on the direction of Bisichi Mining i.e., Bisichi Mining and Ithaca Energy go up and down completely randomly.
Pair Corralation between Bisichi Mining and Ithaca Energy
Assuming the 90 days trading horizon Bisichi Mining PLC is expected to under-perform the Ithaca Energy. In addition to that, Bisichi Mining is 1.13 times more volatile than Ithaca Energy PLC. It trades about -0.04 of its total potential returns per unit of risk. Ithaca Energy PLC is currently generating about -0.03 per unit of volatility. If you would invest 17,096 in Ithaca Energy PLC on September 3, 2024 and sell it today you would lose (6,696) from holding Ithaca Energy PLC or give up 39.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Bisichi Mining PLC vs. Ithaca Energy PLC
Performance |
| Timeline |
| Bisichi Mining PLC |
| Ithaca Energy PLC |
Bisichi Mining and Ithaca Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bisichi Mining and Ithaca Energy
The main advantage of trading using opposite Bisichi Mining and Ithaca Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bisichi Mining position performs unexpectedly, Ithaca Energy 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 Ithaca Energy will offset losses from the drop in Ithaca Energy's long position.| Bisichi Mining vs. Ryanair Holdings plc | Bisichi Mining vs. Fair Oaks Income | Bisichi Mining vs. Mindflair Plc | Bisichi Mining vs. Westlake Chemical Corp |
| Ithaca Energy vs. Bisichi Mining PLC | Ithaca Energy vs. Monster Beverage Corp | Ithaca Energy vs. Young Cos Brewery | Ithaca Energy vs. Cornish Metals |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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