Correlation Between Bankers Investment and Creo Medical
Can any of the company-specific risk be diversified away by investing in both Bankers Investment and Creo Medical 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 Creo Medical 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 Creo Medical Group, you can compare the effects of market volatilities on Bankers Investment and Creo Medical 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 Creo Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bankers Investment and Creo Medical.
Diversification Opportunities for Bankers Investment and Creo Medical
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bankers and Creo is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Bankers Investment Trust and Creo Medical Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Creo Medical Group 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 Creo Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Creo Medical Group has no effect on the direction of Bankers Investment i.e., Bankers Investment and Creo Medical go up and down completely randomly.
Pair Corralation between Bankers Investment and Creo Medical
Assuming the 90 days trading horizon Bankers Investment Trust is expected to generate 0.24 times more return on investment than Creo Medical. However, Bankers Investment Trust is 4.09 times less risky than Creo Medical. It trades about 0.32 of its potential returns per unit of risk. Creo Medical Group is currently generating about -0.41 per unit of risk. If you would invest 11,120 in Bankers Investment Trust on August 30, 2024 and sell it today you would earn a total of 420.00 from holding Bankers Investment Trust or generate 3.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Bankers Investment Trust vs. Creo Medical Group
Performance |
| Timeline |
| Bankers Investment Trust |
| Creo Medical Group |
Bankers Investment and Creo Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bankers Investment and Creo Medical
The main advantage of trading using opposite Bankers Investment and Creo Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bankers Investment position performs unexpectedly, Creo Medical 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 Creo Medical will offset losses from the drop in Creo Medical's long position.| Bankers Investment vs. Samsung Electronics Co | Bankers Investment vs. Samsung Electronics Co | Bankers Investment vs. Hyundai Motor | Bankers Investment vs. Toyota Motor Corp |
| Creo Medical vs. Verizon Communications | Creo Medical vs. Naturhouse Health SA | Creo Medical vs. Aeorema Communications Plc | Creo Medical vs. Zegona Communications Plc |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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