Correlation Between Bim Birlesik and Niagara Mohawk
Can any of the company-specific risk be diversified away by investing in both Bim Birlesik and Niagara Mohawk 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 Bim Birlesik and Niagara Mohawk into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bim Birlesik Magazalar and Niagara Mohawk Power, you can compare the effects of market volatilities on Bim Birlesik and Niagara Mohawk 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 Bim Birlesik with a short position of Niagara Mohawk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bim Birlesik and Niagara Mohawk.
Diversification Opportunities for Bim Birlesik and Niagara Mohawk
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bim and Niagara is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Bim Birlesik Magazalar and Niagara Mohawk Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Niagara Mohawk Power and Bim Birlesik 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 Bim Birlesik Magazalar are associated (or correlated) with Niagara Mohawk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Niagara Mohawk Power has no effect on the direction of Bim Birlesik i.e., Bim Birlesik and Niagara Mohawk go up and down completely randomly.
Pair Corralation between Bim Birlesik and Niagara Mohawk
Assuming the 90 days horizon Bim Birlesik Magazalar is expected to generate 1.98 times more return on investment than Niagara Mohawk. However, Bim Birlesik is 1.98 times more volatile than Niagara Mohawk Power. It trades about 0.1 of its potential returns per unit of risk. Niagara Mohawk Power is currently generating about -0.01 per unit of risk. If you would invest 157.00 in Bim Birlesik Magazalar on September 3, 2024 and sell it today you would earn a total of 823.00 from holding Bim Birlesik Magazalar or generate 524.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 60.0% |
| Values | Daily Returns |
Bim Birlesik Magazalar vs. Niagara Mohawk Power
Performance |
| Timeline |
| Bim Birlesik Magazalar |
| Niagara Mohawk Power |
Bim Birlesik and Niagara Mohawk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bim Birlesik and Niagara Mohawk
The main advantage of trading using opposite Bim Birlesik and Niagara Mohawk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bim Birlesik position performs unexpectedly, Niagara Mohawk 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 Niagara Mohawk will offset losses from the drop in Niagara Mohawk's long position.| Bim Birlesik vs. Diamond Estates Wines | Bim Birlesik vs. First Ship Lease | Bim Birlesik vs. Oatly Group AB | Bim Birlesik vs. Willamette Valley Vineyards |
| Niagara Mohawk vs. Apple Inc | Niagara Mohawk vs. Microsoft | Niagara Mohawk vs. Amazon Inc | Niagara Mohawk vs. Alphabet Inc Class C |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |