Correlation Between Bright Kindle and Benguet Corp
Can any of the company-specific risk be diversified away by investing in both Bright Kindle and Benguet Corp 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 Bright Kindle and Benguet Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bright Kindle Resources and Benguet Corp A, you can compare the effects of market volatilities on Bright Kindle and Benguet Corp 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 Bright Kindle with a short position of Benguet Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bright Kindle and Benguet Corp.
Diversification Opportunities for Bright Kindle and Benguet Corp
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bright and Benguet is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Bright Kindle Resources and Benguet Corp A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Benguet Corp A and Bright Kindle 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 Bright Kindle Resources are associated (or correlated) with Benguet Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Benguet Corp A has no effect on the direction of Bright Kindle i.e., Bright Kindle and Benguet Corp go up and down completely randomly.
Pair Corralation between Bright Kindle and Benguet Corp
Assuming the 90 days trading horizon Bright Kindle Resources is expected to under-perform the Benguet Corp. In addition to that, Bright Kindle is 1.5 times more volatile than Benguet Corp A. It trades about -0.01 of its total potential returns per unit of risk. Benguet Corp A is currently generating about 0.0 per unit of volatility. If you would invest 403.00 in Benguet Corp A on September 3, 2024 and sell it today you would lose (53.00) from holding Benguet Corp A or give up 13.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.07% |
| Values | Daily Returns |
Bright Kindle Resources vs. Benguet Corp A
Performance |
| Timeline |
| Bright Kindle Resources |
| Benguet Corp A |
Bright Kindle and Benguet Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bright Kindle and Benguet Corp
The main advantage of trading using opposite Bright Kindle and Benguet Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bright Kindle position performs unexpectedly, Benguet Corp 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 Benguet Corp will offset losses from the drop in Benguet Corp's long position.| Bright Kindle vs. GT Capital Holdings | Bright Kindle vs. Allhome Corp | Bright Kindle vs. Jollibee Foods Corp | Bright Kindle vs. LFM Properties Corp |
| Benguet Corp vs. Apex Mining Co | Benguet Corp vs. Suntrust Home Developers | Benguet Corp vs. Converge Information Communications | Benguet Corp vs. Semirara Mining Corp |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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