Correlation Between Bimini Capital and SPACE
Can any of the company-specific risk be diversified away by investing in both Bimini Capital and SPACE 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 SPACE 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 SPACE, you can compare the effects of market volatilities on Bimini Capital and SPACE 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 SPACE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bimini Capital and SPACE.
Diversification Opportunities for Bimini Capital and SPACE
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bimini and SPACE is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Bimini Capital Management and SPACE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPACE 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 SPACE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPACE has no effect on the direction of Bimini Capital i.e., Bimini Capital and SPACE go up and down completely randomly.
Pair Corralation between Bimini Capital and SPACE
Given the investment horizon of 90 days Bimini Capital is expected to generate 102.11 times less return on investment than SPACE. But when comparing it to its historical volatility, Bimini Capital Management is 23.09 times less risky than SPACE. It trades about 0.04 of its potential returns per unit of risk. SPACE is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 0.00 in SPACE on September 3, 2024 and sell it today you would earn a total of 59.00 from holding SPACE or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 61.82% |
| Values | Daily Returns |
Bimini Capital Management vs. SPACE
Performance |
| Timeline |
| Bimini Capital Management |
| SPACE |
Bimini Capital and SPACE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bimini Capital and SPACE
The main advantage of trading using opposite Bimini Capital and SPACE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bimini Capital position performs unexpectedly, SPACE 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 SPACE will offset losses from the drop in SPACE'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 |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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