Correlation Between Balticon and E Xim
Can any of the company-specific risk be diversified away by investing in both Balticon and E Xim 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 Balticon and E Xim into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Balticon and E Xim IT, you can compare the effects of market volatilities on Balticon and E Xim 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 Balticon with a short position of E Xim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Balticon and E Xim.
Diversification Opportunities for Balticon and E Xim
Excellent diversification
The 3 months correlation between Balticon and EXM is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Balticon and E Xim IT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on E Xim IT and Balticon 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 Balticon are associated (or correlated) with E Xim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of E Xim IT has no effect on the direction of Balticon i.e., Balticon and E Xim go up and down completely randomly.
Pair Corralation between Balticon and E Xim
Assuming the 90 days trading horizon Balticon is expected to generate 1.31 times less return on investment than E Xim. In addition to that, Balticon is 1.13 times more volatile than E Xim IT. It trades about 0.17 of its total potential returns per unit of risk. E Xim IT is currently generating about 0.25 per unit of volatility. If you would invest 12,900 in E Xim IT on August 30, 2024 and sell it today you would earn a total of 3,600 from holding E Xim IT or generate 27.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 85.19% |
| Values | Daily Returns |
Balticon vs. E Xim IT
Performance |
| Timeline |
| Balticon |
| E Xim IT |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
Balticon and E Xim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Balticon and E Xim
The main advantage of trading using opposite Balticon and E Xim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Balticon position performs unexpectedly, E Xim 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 E Xim will offset losses from the drop in E Xim's long position.| Balticon vs. LSI Software SA | Balticon vs. Road Studio SA | Balticon vs. SOFTWARE MANSION SPOLKA | Balticon vs. Enter Air SA |
| E Xim vs. Varsav Game Studios | E Xim vs. Gamedust SA | E Xim vs. Ultimate Games SA | E Xim vs. Inter Cars SA |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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