Correlation Between Bimini Capital and Elysee Development
Can any of the company-specific risk be diversified away by investing in both Bimini Capital and Elysee Development 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 Bimini Capital and Elysee Development into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bimini Capital Management and Elysee Development Corp, you can compare the effects of market volatilities on Bimini Capital and Elysee Development 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 Bimini Capital with a short position of Elysee Development. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bimini Capital and Elysee Development.
Diversification Opportunities for Bimini Capital and Elysee Development
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bimini and Elysee is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Bimini Capital Management and Elysee Development Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elysee Development Corp and Bimini Capital 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 Bimini Capital Management are associated (or correlated) with Elysee Development. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elysee Development Corp has no effect on the direction of Bimini Capital i.e., Bimini Capital and Elysee Development go up and down completely randomly.
Pair Corralation between Bimini Capital and Elysee Development
Given the investment horizon of 90 days Bimini Capital Management is expected to generate 0.9 times more return on investment than Elysee Development. However, Bimini Capital Management is 1.11 times less risky than Elysee Development. It trades about 0.17 of its potential returns per unit of risk. Elysee Development Corp is currently generating about 0.0 per unit of risk. If you would invest 93.00 in Bimini Capital Management on September 1, 2024 and sell it today you would earn a total of 17.00 from holding Bimini Capital Management or generate 18.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bimini Capital Management vs. Elysee Development Corp
Performance |
| Timeline |
| Bimini Capital Management |
| Elysee Development Corp |
Bimini Capital and Elysee Development Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bimini Capital and Elysee Development
The main advantage of trading using opposite Bimini Capital and Elysee Development positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bimini Capital position performs unexpectedly, Elysee Development 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 Elysee Development will offset losses from the drop in Elysee Development's long position.| Bimini Capital vs. HUMANA INC | Bimini Capital vs. SCOR PK | Bimini Capital vs. Aquagold International | Bimini Capital vs. Thrivent High Yield |
| Elysee Development vs. Blackhawk Growth Corp | Elysee Development vs. Urbana | Elysee Development vs. Guardian Capital Group | Elysee Development vs. Flow Capital Corp |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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