Correlation Between Bankers Investment and Oakley Capital
Can any of the company-specific risk be diversified away by investing in both Bankers Investment and Oakley Capital 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 Oakley Capital 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 Oakley Capital Investments, you can compare the effects of market volatilities on Bankers Investment and Oakley Capital 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 Oakley Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bankers Investment and Oakley Capital.
Diversification Opportunities for Bankers Investment and Oakley Capital
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bankers and Oakley is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Bankers Investment Trust and Oakley Capital Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oakley Capital Inves 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 Oakley Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oakley Capital Inves has no effect on the direction of Bankers Investment i.e., Bankers Investment and Oakley Capital go up and down completely randomly.
Pair Corralation between Bankers Investment and Oakley Capital
Assuming the 90 days trading horizon Bankers Investment Trust is expected to generate 0.96 times more return on investment than Oakley Capital. However, Bankers Investment Trust is 1.05 times less risky than Oakley Capital. It trades about 0.06 of its potential returns per unit of risk. Oakley Capital Investments is currently generating about -0.02 per unit of risk. If you would invest 11,001 in Bankers Investment Trust on September 3, 2024 and sell it today you would earn a total of 659.00 from holding Bankers Investment Trust or generate 5.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bankers Investment Trust vs. Oakley Capital Investments
Performance |
| Timeline |
| Bankers Investment Trust |
| Oakley Capital Inves |
Bankers Investment and Oakley Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bankers Investment and Oakley Capital
The main advantage of trading using opposite Bankers Investment and Oakley Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bankers Investment position performs unexpectedly, Oakley Capital 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 Oakley Capital will offset losses from the drop in Oakley Capital's long position.| Bankers Investment vs. Verizon Communications | Bankers Investment vs. JD Sports Fashion | Bankers Investment vs. Silvercorp Metals | Bankers Investment vs. Gaztransport et Technigaz |
| Oakley Capital vs. Universal Display Corp | Oakley Capital vs. Central Asia Metals | Oakley Capital vs. Kaufman Et Broad | Oakley Capital vs. Roadside Real Estate |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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