Correlation Between Bankers Investment and Liontrust Asset
Can any of the company-specific risk be diversified away by investing in both Bankers Investment and Liontrust Asset 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 Liontrust Asset 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 Liontrust Asset Management, you can compare the effects of market volatilities on Bankers Investment and Liontrust Asset 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 Liontrust Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bankers Investment and Liontrust Asset.
Diversification Opportunities for Bankers Investment and Liontrust Asset
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bankers and Liontrust is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Bankers Investment Trust and Liontrust Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liontrust Asset Mana 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 Liontrust Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liontrust Asset Mana has no effect on the direction of Bankers Investment i.e., Bankers Investment and Liontrust Asset go up and down completely randomly.
Pair Corralation between Bankers Investment and Liontrust Asset
Assuming the 90 days trading horizon Bankers Investment is expected to generate 24.57 times less return on investment than Liontrust Asset. But when comparing it to its historical volatility, Bankers Investment Trust is 5.36 times less risky than Liontrust Asset. It trades about 0.08 of its potential returns per unit of risk. Liontrust Asset Management is currently generating about 0.37 of returns per unit of risk over similar time horizon. If you would invest 39,818 in Liontrust Asset Management on September 13, 2024 and sell it today you would earn a total of 8,882 from holding Liontrust Asset Management or generate 22.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Bankers Investment Trust vs. Liontrust Asset Management
Performance |
| Timeline |
| Bankers Investment Trust |
| Liontrust Asset Mana |
Bankers Investment and Liontrust Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bankers Investment and Liontrust Asset
The main advantage of trading using opposite Bankers Investment and Liontrust Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bankers Investment position performs unexpectedly, Liontrust Asset 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 Liontrust Asset will offset losses from the drop in Liontrust Asset's long position.| Bankers Investment vs. Catalyst Media Group | Bankers Investment vs. CATLIN GROUP | Bankers Investment vs. Tamburi Investment Partners | Bankers Investment vs. Magnora ASA |
| Liontrust Asset vs. Catalyst Media Group | Liontrust Asset vs. CATLIN GROUP | Liontrust Asset vs. Tamburi Investment Partners | Liontrust Asset vs. Magnora ASA |
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..
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