Correlation Between Balkan Mining and Dug Technology
Can any of the company-specific risk be diversified away by investing in both Balkan Mining and Dug 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 Balkan Mining and Dug Technology 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 Dug Technology, you can compare the effects of market volatilities on Balkan Mining and Dug 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 Balkan Mining with a short position of Dug Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Balkan Mining and Dug Technology.
Diversification Opportunities for Balkan Mining and Dug Technology
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Balkan and Dug is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Balkan Mining and and Dug Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dug 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 Dug Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dug Technology has no effect on the direction of Balkan Mining i.e., Balkan Mining and Dug Technology go up and down completely randomly.
Pair Corralation between Balkan Mining and Dug Technology
Assuming the 90 days trading horizon Balkan Mining and is expected to generate 0.56 times more return on investment than Dug Technology. However, Balkan Mining and is 1.79 times less risky than Dug Technology. It trades about 0.22 of its potential returns per unit of risk. Dug Technology is currently generating about 0.01 per unit of risk. If you would invest 4.70 in Balkan Mining and on November 1, 2024 and sell it today you would earn a total of 0.50 from holding Balkan Mining and or generate 10.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Balkan Mining and vs. Dug Technology
Performance |
| Timeline |
| Balkan Mining |
| Dug Technology |
Balkan Mining and Dug Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Balkan Mining and Dug Technology
The main advantage of trading using opposite Balkan Mining and Dug Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Balkan Mining position performs unexpectedly, Dug 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 Dug Technology will offset losses from the drop in Dug Technology's long position.| Balkan Mining vs. The Environmental Group | Balkan Mining vs. Tombador Iron | Balkan Mining vs. Bisalloy Steel Group | Balkan Mining vs. Black Rock Mining |
| Dug Technology vs. oOhMedia | Dug Technology vs. Land Homes Group | Dug Technology vs. Mount Gibson Iron | Dug Technology vs. Iron Road |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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