Correlation Between Bankers Investment and BBGI SICAV
Can any of the company-specific risk be diversified away by investing in both Bankers Investment and BBGI SICAV 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 BBGI SICAV 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 BBGI SICAV SA, you can compare the effects of market volatilities on Bankers Investment and BBGI SICAV 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 BBGI SICAV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bankers Investment and BBGI SICAV.
Diversification Opportunities for Bankers Investment and BBGI SICAV
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bankers and BBGI is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Bankers Investment Trust and BBGI SICAV SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BBGI SICAV SA 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 BBGI SICAV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BBGI SICAV SA has no effect on the direction of Bankers Investment i.e., Bankers Investment and BBGI SICAV go up and down completely randomly.
Pair Corralation between Bankers Investment and BBGI SICAV
Assuming the 90 days trading horizon Bankers Investment Trust is expected to generate 0.65 times more return on investment than BBGI SICAV. However, Bankers Investment Trust is 1.53 times less risky than BBGI SICAV. It trades about 0.1 of its potential returns per unit of risk. BBGI SICAV SA is currently generating about 0.03 per unit of risk. If you would invest 9,104 in Bankers Investment Trust on September 12, 2024 and sell it today you would earn a total of 2,476 from holding Bankers Investment Trust or generate 27.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.7% |
| Values | Daily Returns |
Bankers Investment Trust vs. BBGI SICAV SA
Performance |
| Timeline |
| Bankers Investment Trust |
| BBGI SICAV SA |
Bankers Investment and BBGI SICAV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bankers Investment and BBGI SICAV
The main advantage of trading using opposite Bankers Investment and BBGI SICAV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bankers Investment position performs unexpectedly, BBGI SICAV 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 BBGI SICAV will offset losses from the drop in BBGI SICAV's long position.| Bankers Investment vs. Liberty Media Corp | Bankers Investment vs. Panther Metals PLC | Bankers Investment vs. Centaur Media | Bankers Investment vs. GoldMining |
| BBGI SICAV vs. Bankers Investment Trust | BBGI SICAV vs. United States Steel | BBGI SICAV vs. New Residential Investment | BBGI SICAV vs. Lowland Investment Co |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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