Correlation Between Bankers Investment and Systemair
Can any of the company-specific risk be diversified away by investing in both Bankers Investment and Systemair 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 Bankers Investment and Systemair into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bankers Investment Trust and Systemair AB, you can compare the effects of market volatilities on Bankers Investment and Systemair 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 Bankers Investment with a short position of Systemair. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bankers Investment and Systemair.
Diversification Opportunities for Bankers Investment and Systemair
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bankers and Systemair is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Bankers Investment Trust and Systemair AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Systemair AB and Bankers Investment 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 Bankers Investment Trust are associated (or correlated) with Systemair. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Systemair AB has no effect on the direction of Bankers Investment i.e., Bankers Investment and Systemair go up and down completely randomly.
Pair Corralation between Bankers Investment and Systemair
Assuming the 90 days trading horizon Bankers Investment is expected to generate 15.99 times less return on investment than Systemair. But when comparing it to its historical volatility, Bankers Investment Trust is 6.17 times less risky than Systemair. It trades about 0.1 of its potential returns per unit of risk. Systemair AB is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 8,300 in Systemair AB on September 13, 2024 and sell it today you would earn a total of 1,440 from holding Systemair AB or generate 17.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bankers Investment Trust vs. Systemair AB
Performance |
| Timeline |
| Bankers Investment Trust |
| Systemair AB |
Bankers Investment and Systemair Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bankers Investment and Systemair
The main advantage of trading using opposite Bankers Investment and Systemair positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bankers Investment position performs unexpectedly, Systemair 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 Systemair will offset losses from the drop in Systemair's long position.| Bankers Investment vs. Catalyst Media Group | Bankers Investment vs. CATLIN GROUP | Bankers Investment vs. Tamburi Investment Partners | Bankers Investment vs. Magnora ASA |
| Systemair vs. Samsung Electronics Co | Systemair vs. Samsung Electronics Co | Systemair vs. Hyundai Motor | Systemair vs. Reliance Industries Ltd |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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