Correlation Between Balkan Mining and British Amer
Can any of the company-specific risk be diversified away by investing in both Balkan Mining and British Amer 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 Balkan Mining and British Amer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Balkan Mining and and Bailador Technology Invest, you can compare the effects of market volatilities on Balkan Mining and British Amer 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 Balkan Mining with a short position of British Amer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Balkan Mining and British Amer.
Diversification Opportunities for Balkan Mining and British Amer
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Balkan and British is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Balkan Mining and and Bailador Technology Invest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bailador Technology and Balkan Mining 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 Balkan Mining and are associated (or correlated) with British Amer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bailador Technology has no effect on the direction of Balkan Mining i.e., Balkan Mining and British Amer go up and down completely randomly.
Pair Corralation between Balkan Mining and British Amer
Assuming the 90 days trading horizon Balkan Mining and is expected to under-perform the British Amer. In addition to that, Balkan Mining is 4.98 times more volatile than Bailador Technology Invest. It trades about -0.03 of its total potential returns per unit of risk. Bailador Technology Invest is currently generating about 0.02 per unit of volatility. If you would invest 111.00 in Bailador Technology Invest on October 12, 2024 and sell it today you would earn a total of 9.00 from holding Bailador Technology Invest or generate 8.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Balkan Mining and vs. Bailador Technology Invest
Performance |
| Timeline |
| Balkan Mining |
| Bailador Technology |
Balkan Mining and British Amer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Balkan Mining and British Amer
The main advantage of trading using opposite Balkan Mining and British Amer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Balkan Mining position performs unexpectedly, British Amer 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 British Amer will offset losses from the drop in British Amer's long position.| Balkan Mining vs. Commonwealth Bank of | Balkan Mining vs. Actinogen Medical | Balkan Mining vs. Insignia Financial | Balkan Mining vs. Queste Communications |
| British Amer vs. Sports Entertainment Group | British Amer vs. Maggie Beer Holdings | British Amer vs. Kip McGrath Education | British Amer vs. ABACUS STORAGE KING |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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