Correlation Between BKI Investment and Ras Technology
Can any of the company-specific risk be diversified away by investing in both BKI Investment and Ras Technology 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 Ras Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BKI Investment and Ras Technology Holdings, you can compare the effects of market volatilities on BKI Investment and Ras Technology 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 Ras Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of BKI Investment and Ras Technology.
Diversification Opportunities for BKI Investment and Ras Technology
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between BKI and Ras is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding BKI Investment and Ras Technology Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ras Technology 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 Ras Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ras Technology Holdings has no effect on the direction of BKI Investment i.e., BKI Investment and Ras Technology go up and down completely randomly.
Pair Corralation between BKI Investment and Ras Technology
Assuming the 90 days trading horizon BKI Investment is expected to generate 0.28 times more return on investment than Ras Technology. However, BKI Investment is 3.57 times less risky than Ras Technology. It trades about 0.02 of its potential returns per unit of risk. Ras Technology Holdings is currently generating about -0.06 per unit of risk. If you would invest 168.00 in BKI Investment on September 1, 2024 and sell it today you would earn a total of 4.00 from holding BKI Investment or generate 2.38% 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. Ras Technology Holdings
Performance |
| Timeline |
| BKI Investment |
| Ras Technology Holdings |
BKI Investment and Ras Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BKI Investment and Ras Technology
The main advantage of trading using opposite BKI Investment and Ras Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BKI Investment position performs unexpectedly, Ras Technology 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 Ras Technology will offset losses from the drop in Ras Technology's long position.| BKI Investment vs. GQG Partners DRC | BKI Investment vs. MFF Capital Investments | BKI Investment vs. Metrics Master Income | BKI Investment vs. L1 Long Short |
| Ras Technology vs. Aneka Tambang Tbk | Ras Technology vs. Unibail Rodamco Westfield SE | Ras Technology vs. Macquarie Group | Ras Technology vs. Commonwealth Bank |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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