Correlation Between BankInvest Optima and Carnegie Wealth
Can any of the company-specific risk be diversified away by investing in both BankInvest Optima and Carnegie Wealth 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 Carnegie Wealth 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 Carnegie Wealth Management, you can compare the effects of market volatilities on BankInvest Optima and Carnegie Wealth 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 Carnegie Wealth. Check out your portfolio center. Please also check ongoing floating volatility patterns of BankInvest Optima and Carnegie Wealth.
Diversification Opportunities for BankInvest Optima and Carnegie Wealth
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between BankInvest and Carnegie is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding BankInvest Optima 30 and Carnegie Wealth Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carnegie Wealth Mana 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 Carnegie Wealth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carnegie Wealth Mana has no effect on the direction of BankInvest Optima i.e., BankInvest Optima and Carnegie Wealth go up and down completely randomly.
Pair Corralation between BankInvest Optima and Carnegie Wealth
Assuming the 90 days trading horizon BankInvest Optima 30 is expected to generate 0.34 times more return on investment than Carnegie Wealth. However, BankInvest Optima 30 is 2.9 times less risky than Carnegie Wealth. It trades about 0.1 of its potential returns per unit of risk. Carnegie Wealth Management is currently generating about -0.04 per unit of risk. If you would invest 11,805 in BankInvest Optima 30 on October 19, 2024 and sell it today you would earn a total of 555.00 from holding BankInvest Optima 30 or generate 4.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 96.75% |
| Values | Daily Returns |
BankInvest Optima 30 vs. Carnegie Wealth Management
Performance |
| Timeline |
| BankInvest Optima |
| Carnegie Wealth Mana |
BankInvest Optima and Carnegie Wealth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BankInvest Optima and Carnegie Wealth
The main advantage of trading using opposite BankInvest Optima and Carnegie Wealth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BankInvest Optima position performs unexpectedly, Carnegie Wealth 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 Carnegie Wealth will offset losses from the drop in Carnegie Wealth's long position.| BankInvest Optima vs. Carnegie Wealth Management | BankInvest Optima vs. Sydbank AS | BankInvest Optima vs. Prime Office AS | BankInvest Optima vs. Jyske Bank AS |
| Carnegie Wealth vs. Ringkjoebing Landbobank AS | Carnegie Wealth vs. NTG Nordic Transport | Carnegie Wealth vs. Groenlandsbanken AS | Carnegie Wealth vs. BankInv Kort HY |
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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