Correlation Between Bankers Investment and Everyman Media
Can any of the company-specific risk be diversified away by investing in both Bankers Investment and Everyman Media 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 Everyman Media 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 Everyman Media Group, you can compare the effects of market volatilities on Bankers Investment and Everyman Media 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 Everyman Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bankers Investment and Everyman Media.
Diversification Opportunities for Bankers Investment and Everyman Media
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bankers and Everyman is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Bankers Investment Trust and Everyman Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Everyman Media 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 Everyman Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Everyman Media Group has no effect on the direction of Bankers Investment i.e., Bankers Investment and Everyman Media go up and down completely randomly.
Pair Corralation between Bankers Investment and Everyman Media
Assuming the 90 days trading horizon Bankers Investment Trust is expected to generate 1.19 times more return on investment than Everyman Media. However, Bankers Investment is 1.19 times more volatile than Everyman Media Group. It trades about -0.01 of its potential returns per unit of risk. Everyman Media Group is currently generating about -0.12 per unit of risk. If you would invest 11,620 in Bankers Investment Trust on October 13, 2024 and sell it today you would lose (20.00) from holding Bankers Investment Trust or give up 0.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Bankers Investment Trust vs. Everyman Media Group
Performance |
| Timeline |
| Bankers Investment Trust |
| Everyman Media Group |
Bankers Investment and Everyman Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bankers Investment and Everyman Media
The main advantage of trading using opposite Bankers Investment and Everyman Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bankers Investment position performs unexpectedly, Everyman Media 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 Everyman Media will offset losses from the drop in Everyman Media's long position.| Bankers Investment vs. National Beverage Corp | Bankers Investment vs. Host Hotels Resorts | Bankers Investment vs. Young Cos Brewery | Bankers Investment vs. Tatton Asset Management |
| Everyman Media vs. FC Investment Trust | Everyman Media vs. One Media iP | Everyman Media vs. Catalyst Media Group | Everyman Media 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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