Correlation Between Bankers Investment and Dairy Farm
Can any of the company-specific risk be diversified away by investing in both Bankers Investment and Dairy Farm 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 Dairy Farm 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 Dairy Farm International, you can compare the effects of market volatilities on Bankers Investment and Dairy Farm 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 Dairy Farm. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bankers Investment and Dairy Farm.
Diversification Opportunities for Bankers Investment and Dairy Farm
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bankers and Dairy is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bankers Investment Trust and Dairy Farm International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dairy Farm International 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 Dairy Farm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dairy Farm International has no effect on the direction of Bankers Investment i.e., Bankers Investment and Dairy Farm go up and down completely randomly.
Pair Corralation between Bankers Investment and Dairy Farm
If you would invest 10,172 in Bankers Investment Trust on October 16, 2024 and sell it today you would earn a total of 1,548 from holding Bankers Investment Trust or generate 15.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Bankers Investment Trust vs. Dairy Farm International
Performance |
| Timeline |
| Bankers Investment Trust |
| Dairy Farm International |
Bankers Investment and Dairy Farm Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bankers Investment and Dairy Farm
The main advantage of trading using opposite Bankers Investment and Dairy Farm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bankers Investment position performs unexpectedly, Dairy Farm 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 Dairy Farm will offset losses from the drop in Dairy Farm's long position.| Bankers Investment vs. InterContinental Hotels Group | Bankers Investment vs. Central Asia Metals | Bankers Investment vs. URU Metals | Bankers Investment vs. Scandic Hotels Group |
| Dairy Farm vs. Alien Metals | Dairy Farm vs. Sydbank | Dairy Farm vs. First Class Metals | Dairy Farm vs. Bankers Investment Trust |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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