Correlation Between BKI Investment and GQG Partners
Can any of the company-specific risk be diversified away by investing in both BKI Investment and GQG Partners 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 BKI Investment and GQG Partners into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BKI Investment and GQG Partners DRC, you can compare the effects of market volatilities on BKI Investment and GQG Partners 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 BKI Investment with a short position of GQG Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of BKI Investment and GQG Partners.
Diversification Opportunities for BKI Investment and GQG Partners
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between BKI and GQG is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding BKI Investment and GQG Partners DRC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GQG Partners DRC and BKI Investment 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 BKI Investment are associated (or correlated) with GQG Partners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GQG Partners DRC has no effect on the direction of BKI Investment i.e., BKI Investment and GQG Partners go up and down completely randomly.
Pair Corralation between BKI Investment and GQG Partners
Assuming the 90 days trading horizon BKI Investment is expected to generate 7.76 times less return on investment than GQG Partners. But when comparing it to its historical volatility, BKI Investment is 3.24 times less risky than GQG Partners. It trades about 0.03 of its potential returns per unit of risk. GQG Partners DRC is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 118.00 in GQG Partners DRC on November 27, 2024 and sell it today you would earn a total of 113.00 from holding GQG Partners DRC or generate 95.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BKI Investment vs. GQG Partners DRC
Performance |
| Timeline |
| BKI Investment |
| GQG Partners DRC |
BKI Investment and GQG Partners Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BKI Investment and GQG Partners
The main advantage of trading using opposite BKI Investment and GQG Partners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BKI Investment position performs unexpectedly, GQG Partners 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 GQG Partners will offset losses from the drop in GQG Partners' long position.| BKI Investment vs. Cleanspace Holdings | BKI Investment vs. My Foodie Box | BKI Investment vs. Technology One | BKI Investment vs. Complii FinTech Solutions |
| GQG Partners vs. BKI Investment | GQG Partners vs. K2 Asset Management | GQG Partners vs. A1 Investments Resources | GQG Partners vs. Navigator Global Investments |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |