Correlation Between Bimini Capital and SCOR PK
Can any of the company-specific risk be diversified away by investing in both Bimini Capital and SCOR PK 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 SCOR PK 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 SCOR PK, you can compare the effects of market volatilities on Bimini Capital and SCOR PK 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 SCOR PK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bimini Capital and SCOR PK.
Diversification Opportunities for Bimini Capital and SCOR PK
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bimini and SCOR is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Bimini Capital Management and SCOR PK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCOR PK 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 SCOR PK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCOR PK has no effect on the direction of Bimini Capital i.e., Bimini Capital and SCOR PK go up and down completely randomly.
Pair Corralation between Bimini Capital and SCOR PK
Given the investment horizon of 90 days Bimini Capital Management is expected to under-perform the SCOR PK. In addition to that, Bimini Capital is 1.26 times more volatile than SCOR PK. It trades about -0.03 of its total potential returns per unit of risk. SCOR PK is currently generating about 0.12 per unit of volatility. If you would invest 252.00 in SCOR PK on December 1, 2024 and sell it today you would earn a total of 23.00 from holding SCOR PK or generate 9.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bimini Capital Management vs. SCOR PK
Performance |
| Timeline |
| Bimini Capital Management |
| SCOR PK |
Bimini Capital and SCOR PK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bimini Capital and SCOR PK
The main advantage of trading using opposite Bimini Capital and SCOR PK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bimini Capital position performs unexpectedly, SCOR PK 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 SCOR PK will offset losses from the drop in SCOR PK's long position.| Bimini Capital vs. Elysee Development Corp | Bimini Capital vs. Azimut Holding SpA | Bimini Capital vs. Blackhawk Growth Corp | Bimini Capital vs. Ameritrans 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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