Correlation Between Bimini Capital and Azimut Holding
Can any of the company-specific risk be diversified away by investing in both Bimini Capital and Azimut Holding 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 Azimut Holding 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 Azimut Holding SpA, you can compare the effects of market volatilities on Bimini Capital and Azimut Holding 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 Azimut Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bimini Capital and Azimut Holding.
Diversification Opportunities for Bimini Capital and Azimut Holding
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bimini and Azimut is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Bimini Capital Management and Azimut Holding SpA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Azimut Holding SpA 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 Azimut Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Azimut Holding SpA has no effect on the direction of Bimini Capital i.e., Bimini Capital and Azimut Holding go up and down completely randomly.
Pair Corralation between Bimini Capital and Azimut Holding
Given the investment horizon of 90 days Bimini Capital Management is expected to generate 1.87 times more return on investment than Azimut Holding. However, Bimini Capital is 1.87 times more volatile than Azimut Holding SpA. It trades about 0.04 of its potential returns per unit of risk. Azimut Holding SpA is currently generating about 0.04 per unit of risk. If you would invest 100.00 in Bimini Capital Management on September 3, 2024 and sell it today you would earn a total of 10.00 from holding Bimini Capital Management or generate 10.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 71.11% |
| Values | Daily Returns |
Bimini Capital Management vs. Azimut Holding SpA
Performance |
| Timeline |
| Bimini Capital Management |
| Azimut Holding SpA |
Bimini Capital and Azimut Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bimini Capital and Azimut Holding
The main advantage of trading using opposite Bimini Capital and Azimut Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bimini Capital position performs unexpectedly, Azimut Holding 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 Azimut Holding will offset losses from the drop in Azimut Holding's long position.| Bimini Capital vs. Western Asset Global | Bimini Capital vs. Invesco Trust For | Bimini Capital vs. Logan Ridge Finance | Bimini Capital vs. Invesco Advantage MIT |
| Azimut Holding vs. Starfleet Innotech | Azimut Holding vs. Flow Capital Corp | Azimut Holding vs. Ameritrans Capital Corp | Azimut Holding vs. Blackhawk Growth 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |