Correlation Between BankInvest Optima and BankInvest Optima

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both BankInvest Optima and BankInvest Optima 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 BankInvest Optima and BankInvest Optima into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BankInvest Optima 10 and BankInvest Optima 30, you can compare the effects of market volatilities on BankInvest Optima and BankInvest Optima 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 BankInvest Optima with a short position of BankInvest Optima. Check out your portfolio center. Please also check ongoing floating volatility patterns of BankInvest Optima and BankInvest Optima.

Diversification Opportunities for BankInvest Optima and BankInvest Optima

0.88
  Correlation Coefficient

Very poor diversification

The 3 months correlation between BankInvest and BankInvest is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding BankInvest Optima 10 and BankInvest Optima 30 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BankInvest Optima and BankInvest Optima 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 BankInvest Optima 10 are associated (or correlated) with BankInvest Optima. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BankInvest Optima has no effect on the direction of BankInvest Optima i.e., BankInvest Optima and BankInvest Optima go up and down completely randomly.

Pair Corralation between BankInvest Optima and BankInvest Optima

Assuming the 90 days trading horizon BankInvest Optima 10 is expected to generate 0.7 times more return on investment than BankInvest Optima. However, BankInvest Optima 10 is 1.43 times less risky than BankInvest Optima. It trades about 0.24 of its potential returns per unit of risk. BankInvest Optima 30 is currently generating about 0.13 per unit of risk. If you would invest  13,020  in BankInvest Optima 10 on August 29, 2024 and sell it today you would earn a total of  785.00  from holding BankInvest Optima 10 or generate 6.03% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy63.28%
ValuesDaily Returns

BankInvest Optima 10  vs.  BankInvest Optima 30

 Performance 
       Timeline  
BankInvest Optima 

Risk-Adjusted Performance

16 of 100

 
Weak
 
Strong
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in BankInvest Optima 10 are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, BankInvest Optima is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
BankInvest Optima 

Risk-Adjusted Performance

11 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in BankInvest Optima 30 are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound fundamental indicators, BankInvest Optima is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

BankInvest Optima and BankInvest Optima Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with BankInvest Optima and BankInvest Optima

The main advantage of trading using opposite BankInvest Optima and BankInvest Optima positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BankInvest Optima position performs unexpectedly, BankInvest Optima 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 BankInvest Optima will offset losses from the drop in BankInvest Optima's long position.
The idea behind BankInvest Optima 10 and BankInvest Optima 30 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.

Other Complementary Tools

Performance Analysis
Check effects of mean-variance optimization against your current asset allocation
Portfolio Dashboard
Portfolio dashboard that provides centralized access to all your investments
Bond Analysis
Evaluate and analyze corporate bonds as a potential investment for your portfolios.
Global Correlations
Find global opportunities by holding instruments from different markets
Transaction History
View history of all your transactions and understand their impact on performance