Correlation Between BankInvest Optima and Fundamental Invest
Can any of the company-specific risk be diversified away by investing in both BankInvest Optima and Fundamental Invest 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 Fundamental Invest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BankInvest Optima 30 and Fundamental Invest Stock, you can compare the effects of market volatilities on BankInvest Optima and Fundamental Invest 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 Fundamental Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of BankInvest Optima and Fundamental Invest.
Diversification Opportunities for BankInvest Optima and Fundamental Invest
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BankInvest and Fundamental is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding BankInvest Optima 30 and Fundamental Invest Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fundamental Invest Stock 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 30 are associated (or correlated) with Fundamental Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fundamental Invest Stock has no effect on the direction of BankInvest Optima i.e., BankInvest Optima and Fundamental Invest go up and down completely randomly.
Pair Corralation between BankInvest Optima and Fundamental Invest
Assuming the 90 days trading horizon BankInvest Optima 30 is expected to generate 0.48 times more return on investment than Fundamental Invest. However, BankInvest Optima 30 is 2.07 times less risky than Fundamental Invest. It trades about 0.17 of its potential returns per unit of risk. Fundamental Invest Stock is currently generating about -0.16 per unit of risk. If you would invest 10,930 in BankInvest Optima 30 on August 29, 2024 and sell it today you would earn a total of 220.00 from holding BankInvest Optima 30 or generate 2.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BankInvest Optima 30 vs. Fundamental Invest Stock
Performance |
| Timeline |
| BankInvest Optima |
| Fundamental Invest Stock |
BankInvest Optima and Fundamental Invest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BankInvest Optima and Fundamental Invest
The main advantage of trading using opposite BankInvest Optima and Fundamental Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BankInvest Optima position performs unexpectedly, Fundamental Invest 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 Fundamental Invest will offset losses from the drop in Fundamental Invest's long position.| BankInvest Optima vs. MapsPeople AS | BankInvest Optima vs. Penneo AS | BankInvest Optima vs. Dataproces Group AS | BankInvest Optima vs. Orderyoyo AS |
| Fundamental Invest vs. Novo Nordisk AS | Fundamental Invest vs. Nordea Bank Abp | Fundamental Invest vs. DSV Panalpina AS | Fundamental Invest vs. AP Mller |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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