Correlation Between BK Technologies and Cirmaker Technology
Can any of the company-specific risk be diversified away by investing in both BK Technologies and Cirmaker 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 BK Technologies and Cirmaker Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BK Technologies and Cirmaker Technology, you can compare the effects of market volatilities on BK Technologies and Cirmaker 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 BK Technologies with a short position of Cirmaker Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of BK Technologies and Cirmaker Technology.
Diversification Opportunities for BK Technologies and Cirmaker Technology
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between BKTI and Cirmaker is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding BK Technologies and Cirmaker Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cirmaker Technology and BK Technologies 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 BK Technologies are associated (or correlated) with Cirmaker Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cirmaker Technology has no effect on the direction of BK Technologies i.e., BK Technologies and Cirmaker Technology go up and down completely randomly.
Pair Corralation between BK Technologies and Cirmaker Technology
If you would invest 5.40 in Cirmaker Technology on October 25, 2024 and sell it today you would earn a total of 0.00 from holding Cirmaker Technology or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BK Technologies vs. Cirmaker Technology
Performance |
| Timeline |
| BK Technologies |
| Cirmaker Technology |
BK Technologies and Cirmaker Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BK Technologies and Cirmaker Technology
The main advantage of trading using opposite BK Technologies and Cirmaker Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BK Technologies position performs unexpectedly, Cirmaker 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 Cirmaker Technology will offset losses from the drop in Cirmaker Technology's long position.| BK Technologies vs. Frequency Electronics | BK Technologies vs. Actelis Networks | BK Technologies vs. Optical Cable | BK Technologies vs. Baylin Technologies |
| Cirmaker Technology vs. Vulcan Materials | Cirmaker Technology vs. High Performance Beverages | Cirmaker Technology vs. Perseus Mining Limited | Cirmaker Technology vs. Willamette Valley Vineyards |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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