Correlation Between BPS TECHNOLOGY and Ally Leasehold
Can any of the company-specific risk be diversified away by investing in both BPS TECHNOLOGY and Ally Leasehold 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 BPS TECHNOLOGY and Ally Leasehold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BPS TECHNOLOGY PUBLIC and Ally Leasehold Real, you can compare the effects of market volatilities on BPS TECHNOLOGY and Ally Leasehold 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 BPS TECHNOLOGY with a short position of Ally Leasehold. Check out your portfolio center. Please also check ongoing floating volatility patterns of BPS TECHNOLOGY and Ally Leasehold.
Diversification Opportunities for BPS TECHNOLOGY and Ally Leasehold
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BPS and Ally is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding BPS TECHNOLOGY PUBLIC and Ally Leasehold Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ally Leasehold Real and BPS TECHNOLOGY 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 BPS TECHNOLOGY PUBLIC are associated (or correlated) with Ally Leasehold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ally Leasehold Real has no effect on the direction of BPS TECHNOLOGY i.e., BPS TECHNOLOGY and Ally Leasehold go up and down completely randomly.
Pair Corralation between BPS TECHNOLOGY and Ally Leasehold
Assuming the 90 days trading horizon BPS TECHNOLOGY PUBLIC is expected to under-perform the Ally Leasehold. In addition to that, BPS TECHNOLOGY is 1.74 times more volatile than Ally Leasehold Real. It trades about -0.21 of its total potential returns per unit of risk. Ally Leasehold Real is currently generating about 0.09 per unit of volatility. If you would invest 515.00 in Ally Leasehold Real on October 22, 2024 and sell it today you would earn a total of 10.00 from holding Ally Leasehold Real or generate 1.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BPS TECHNOLOGY PUBLIC vs. Ally Leasehold Real
Performance |
| Timeline |
| BPS TECHNOLOGY PUBLIC |
| Ally Leasehold Real |
BPS TECHNOLOGY and Ally Leasehold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BPS TECHNOLOGY and Ally Leasehold
The main advantage of trading using opposite BPS TECHNOLOGY and Ally Leasehold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BPS TECHNOLOGY position performs unexpectedly, Ally Leasehold 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 Ally Leasehold will offset losses from the drop in Ally Leasehold's long position.| BPS TECHNOLOGY vs. Delta Electronics Public | BPS TECHNOLOGY vs. Delta Electronics Public | BPS TECHNOLOGY vs. Airports of Thailand | BPS TECHNOLOGY vs. Airports of Thailand |
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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