Correlation Between Balkan Mining and Credit Clear
Can any of the company-specific risk be diversified away by investing in both Balkan Mining and Credit Clear 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 Credit Clear 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 Credit Clear, you can compare the effects of market volatilities on Balkan Mining and Credit Clear 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 Credit Clear. Check out your portfolio center. Please also check ongoing floating volatility patterns of Balkan Mining and Credit Clear.
Diversification Opportunities for Balkan Mining and Credit Clear
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Balkan and Credit is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Balkan Mining and and Credit Clear in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Credit Clear 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 Credit Clear. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Credit Clear has no effect on the direction of Balkan Mining i.e., Balkan Mining and Credit Clear go up and down completely randomly.
Pair Corralation between Balkan Mining and Credit Clear
Assuming the 90 days trading horizon Balkan Mining and is expected to generate 1.28 times more return on investment than Credit Clear. However, Balkan Mining is 1.28 times more volatile than Credit Clear. It trades about 0.05 of its potential returns per unit of risk. Credit Clear is currently generating about 0.01 per unit of risk. If you would invest 4.90 in Balkan Mining and on October 25, 2024 and sell it today you would earn a total of 0.10 from holding Balkan Mining and or generate 2.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Balkan Mining and vs. Credit Clear
Performance |
| Timeline |
| Balkan Mining |
| Credit Clear |
Balkan Mining and Credit Clear Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Balkan Mining and Credit Clear
The main advantage of trading using opposite Balkan Mining and Credit Clear positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Balkan Mining position performs unexpectedly, Credit Clear 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 Credit Clear will offset losses from the drop in Credit Clear's long position.| Balkan Mining vs. Southern Cross Media | Balkan Mining vs. Talisman Mining | Balkan Mining vs. Nine Entertainment Co | Balkan Mining vs. MetalsGrove Mining |
| Credit Clear vs. Balkan Mining and | Credit Clear vs. Ora Banda Mining | Credit Clear vs. Qbe Insurance Group | Credit Clear vs. Southern Hemisphere Mining |
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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