Correlation Between Bankers Investment and Aston Martin
Can any of the company-specific risk be diversified away by investing in both Bankers Investment and Aston Martin 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 Aston Martin 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 Aston Martin Lagonda, you can compare the effects of market volatilities on Bankers Investment and Aston Martin 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 Aston Martin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bankers Investment and Aston Martin.
Diversification Opportunities for Bankers Investment and Aston Martin
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bankers and Aston is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Bankers Investment Trust and Aston Martin Lagonda in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aston Martin Lagonda 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 Aston Martin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aston Martin Lagonda has no effect on the direction of Bankers Investment i.e., Bankers Investment and Aston Martin go up and down completely randomly.
Pair Corralation between Bankers Investment and Aston Martin
Assuming the 90 days trading horizon Bankers Investment Trust is expected to generate 0.39 times more return on investment than Aston Martin. However, Bankers Investment Trust is 2.55 times less risky than Aston Martin. It trades about 0.38 of its potential returns per unit of risk. Aston Martin Lagonda is currently generating about 0.08 per unit of risk. If you would invest 11,380 in Bankers Investment Trust on October 20, 2024 and sell it today you would earn a total of 800.00 from holding Bankers Investment Trust or generate 7.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bankers Investment Trust vs. Aston Martin Lagonda
Performance |
| Timeline |
| Bankers Investment Trust |
| Aston Martin Lagonda |
Bankers Investment and Aston Martin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bankers Investment and Aston Martin
The main advantage of trading using opposite Bankers Investment and Aston Martin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bankers Investment position performs unexpectedly, Aston Martin 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 Aston Martin will offset losses from the drop in Aston Martin's long position.| Bankers Investment vs. Zoom Video Communications | Bankers Investment vs. Flow Traders NV | Bankers Investment vs. MoneysupermarketCom Group PLC | Bankers Investment vs. Gamma Communications PLC |
| Aston Martin vs. Berkshire Hathaway | Aston Martin vs. Samsung Electronics Co | Aston Martin vs. Samsung Electronics Co | Aston Martin vs. Chocoladefabriken Lindt Spruengli |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |