Correlation Between BKI Investment and Sayona Mining
Can any of the company-specific risk be diversified away by investing in both BKI Investment and Sayona Mining 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 Sayona Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BKI Investment and Sayona Mining, you can compare the effects of market volatilities on BKI Investment and Sayona Mining 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 Sayona Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of BKI Investment and Sayona Mining.
Diversification Opportunities for BKI Investment and Sayona Mining
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between BKI and Sayona is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding BKI Investment and Sayona Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sayona Mining 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 Sayona Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sayona Mining has no effect on the direction of BKI Investment i.e., BKI Investment and Sayona Mining go up and down completely randomly.
Pair Corralation between BKI Investment and Sayona Mining
Assuming the 90 days trading horizon BKI Investment is expected to generate 0.19 times more return on investment than Sayona Mining. However, BKI Investment is 5.36 times less risky than Sayona Mining. It trades about 0.0 of its potential returns per unit of risk. Sayona Mining is currently generating about -0.21 per unit of risk. If you would invest 172.00 in BKI Investment on October 30, 2024 and sell it today you would earn a total of 0.00 from holding BKI Investment or generate 0.0% 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. Sayona Mining
Performance |
| Timeline |
| BKI Investment |
| Sayona Mining |
BKI Investment and Sayona Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BKI Investment and Sayona Mining
The main advantage of trading using opposite BKI Investment and Sayona Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BKI Investment position performs unexpectedly, Sayona Mining 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 Sayona Mining will offset losses from the drop in Sayona Mining's long position.| BKI Investment vs. Collins Foods | BKI Investment vs. Computershare | BKI Investment vs. Black Rock Mining | BKI Investment vs. DY6 Metals |
| Sayona Mining vs. Navigator Global Investments | Sayona Mining vs. Argo Investments | Sayona Mining vs. Commonwealth Bank of | Sayona Mining vs. Macquarie Bank Limited |
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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