Correlation Between Bankers Investment and Uniper SE
Can any of the company-specific risk be diversified away by investing in both Bankers Investment and Uniper SE 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 Uniper SE 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 Uniper SE, you can compare the effects of market volatilities on Bankers Investment and Uniper SE 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 Uniper SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bankers Investment and Uniper SE.
Diversification Opportunities for Bankers Investment and Uniper SE
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bankers and Uniper is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Bankers Investment Trust and Uniper SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uniper SE 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 Uniper SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Uniper SE has no effect on the direction of Bankers Investment i.e., Bankers Investment and Uniper SE go up and down completely randomly.
Pair Corralation between Bankers Investment and Uniper SE
Assuming the 90 days trading horizon Bankers Investment Trust is expected to generate 0.56 times more return on investment than Uniper SE. However, Bankers Investment Trust is 1.79 times less risky than Uniper SE. It trades about 0.36 of its potential returns per unit of risk. Uniper SE is currently generating about 0.17 per unit of risk. If you would invest 11,597 in Bankers Investment Trust on November 4, 2024 and sell it today you would earn a total of 943.00 from holding Bankers Investment Trust or generate 8.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bankers Investment Trust vs. Uniper SE
Performance |
| Timeline |
| Bankers Investment Trust |
| Uniper SE |
Bankers Investment and Uniper SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bankers Investment and Uniper SE
The main advantage of trading using opposite Bankers Investment and Uniper SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bankers Investment position performs unexpectedly, Uniper SE 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 Uniper SE will offset losses from the drop in Uniper SE's long position.| Bankers Investment vs. Inspiration Healthcare Group | Bankers Investment vs. MTI Wireless Edge | Bankers Investment vs. Verizon Communications | Bankers Investment vs. Planet Fitness Cl |
| Uniper SE vs. Software Circle plc | Uniper SE vs. Micron Technology | Uniper SE vs. Sabre Insurance Group | Uniper SE vs. Darden Restaurants |
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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