Correlation Between Bloomsbury Publishing and First
Can any of the company-specific risk be diversified away by investing in both Bloomsbury Publishing and First 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 Bloomsbury Publishing and First into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bloomsbury Publishing Plc and First Class Metals, you can compare the effects of market volatilities on Bloomsbury Publishing and First 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 Bloomsbury Publishing with a short position of First. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bloomsbury Publishing and First.
Diversification Opportunities for Bloomsbury Publishing and First
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bloomsbury and First is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Bloomsbury Publishing Plc and First Class Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Class Metals and Bloomsbury Publishing 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 Bloomsbury Publishing Plc are associated (or correlated) with First. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Class Metals has no effect on the direction of Bloomsbury Publishing i.e., Bloomsbury Publishing and First go up and down completely randomly.
Pair Corralation between Bloomsbury Publishing and First
Assuming the 90 days trading horizon Bloomsbury Publishing Plc is expected to generate 0.39 times more return on investment than First. However, Bloomsbury Publishing Plc is 2.59 times less risky than First. It trades about -0.03 of its potential returns per unit of risk. First Class Metals is currently generating about -0.32 per unit of risk. If you would invest 66,200 in Bloomsbury Publishing Plc on October 10, 2024 and sell it today you would lose (600.00) from holding Bloomsbury Publishing Plc or give up 0.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bloomsbury Publishing Plc vs. First Class Metals
Performance |
| Timeline |
| Bloomsbury Publishing Plc |
| First Class Metals |
Bloomsbury Publishing and First Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bloomsbury Publishing and First
The main advantage of trading using opposite Bloomsbury Publishing and First positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bloomsbury Publishing position performs unexpectedly, First 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 First will offset losses from the drop in First's long position.| Bloomsbury Publishing vs. Empire Metals Limited | Bloomsbury Publishing vs. Tata Steel Limited | Bloomsbury Publishing vs. JLEN Environmental Assets | Bloomsbury Publishing vs. British American Tobacco |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |