Correlation Between BKI Investment and Pointsbet Holdings
Can any of the company-specific risk be diversified away by investing in both BKI Investment and Pointsbet Holdings 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 Pointsbet Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BKI Investment and Pointsbet Holdings, you can compare the effects of market volatilities on BKI Investment and Pointsbet Holdings 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 Pointsbet Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of BKI Investment and Pointsbet Holdings.
Diversification Opportunities for BKI Investment and Pointsbet Holdings
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BKI and Pointsbet is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding BKI Investment and Pointsbet Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pointsbet Holdings 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 Pointsbet Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pointsbet Holdings has no effect on the direction of BKI Investment i.e., BKI Investment and Pointsbet Holdings go up and down completely randomly.
Pair Corralation between BKI Investment and Pointsbet Holdings
Assuming the 90 days trading horizon BKI Investment is expected to generate 345.95 times less return on investment than Pointsbet Holdings. But when comparing it to its historical volatility, BKI Investment is 5.52 times less risky than Pointsbet Holdings. It trades about 0.0 of its potential returns per unit of risk. Pointsbet Holdings is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 65.00 in Pointsbet Holdings on September 12, 2024 and sell it today you would earn a total of 31.00 from holding Pointsbet Holdings or generate 47.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BKI Investment vs. Pointsbet Holdings
Performance |
| Timeline |
| BKI Investment |
| Pointsbet Holdings |
BKI Investment and Pointsbet Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BKI Investment and Pointsbet Holdings
The main advantage of trading using opposite BKI Investment and Pointsbet Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BKI Investment position performs unexpectedly, Pointsbet Holdings 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 Pointsbet Holdings will offset losses from the drop in Pointsbet Holdings' long position.| BKI Investment vs. Australian Foundation Investment | BKI Investment vs. MFF Capital Investments | BKI Investment vs. Metrics Master Income | BKI Investment vs. L1 Long Short |
| Pointsbet Holdings vs. Macquarie Technology Group | Pointsbet Holdings vs. Farm Pride Foods | Pointsbet Holdings vs. Zoom2u Technologies | Pointsbet Holdings vs. Environmental Clean Technologies |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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