Correlation Between Bisichi Mining and STM Group
Can any of the company-specific risk be diversified away by investing in both Bisichi Mining and STM Group 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 STM Group 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 STM Group Plc, you can compare the effects of market volatilities on Bisichi Mining and STM Group 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 STM Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bisichi Mining and STM Group.
Diversification Opportunities for Bisichi Mining and STM Group
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bisichi and STM is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Bisichi Mining PLC and STM Group Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STM Group 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 STM Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STM Group Plc has no effect on the direction of Bisichi Mining i.e., Bisichi Mining and STM Group go up and down completely randomly.
Pair Corralation between Bisichi Mining and STM Group
If you would invest 6,150 in STM Group Plc on September 1, 2024 and sell it today you would earn a total of 0.00 from holding STM Group Plc or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 9.09% |
| Values | Daily Returns |
Bisichi Mining PLC vs. STM Group Plc
Performance |
| Timeline |
| Bisichi Mining PLC |
| STM Group Plc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
Bisichi Mining and STM Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bisichi Mining and STM Group
The main advantage of trading using opposite Bisichi Mining and STM Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bisichi Mining position performs unexpectedly, STM Group 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 STM Group will offset losses from the drop in STM Group's long position.| Bisichi Mining vs. Zoom Video Communications | Bisichi Mining vs. Enbridge | Bisichi Mining vs. Endo International PLC | Bisichi Mining vs. Diversified Energy |
| STM Group vs. Bisichi Mining PLC | STM Group vs. GreenX Metals | STM Group vs. Wheaton Precious Metals | STM Group vs. Hochschild Mining plc |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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