Correlation Between Black Sea and Sure Tech
Can any of the company-specific risk be diversified away by investing in both Black Sea and Sure Tech 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 Black Sea and Sure Tech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Black Sea Property and Sure Tech Investments LP, you can compare the effects of market volatilities on Black Sea and Sure Tech 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 Black Sea with a short position of Sure Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Black Sea and Sure Tech.
Diversification Opportunities for Black Sea and Sure Tech
Excellent diversification
The 3 months correlation between Black and Sure is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Black Sea Property and Sure Tech Investments LP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sure Tech Investments and Black Sea 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 Black Sea Property are associated (or correlated) with Sure Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sure Tech Investments has no effect on the direction of Black Sea i.e., Black Sea and Sure Tech go up and down completely randomly.
Pair Corralation between Black Sea and Sure Tech
Assuming the 90 days trading horizon Black Sea Property is expected to under-perform the Sure Tech. In addition to that, Black Sea is 4.45 times more volatile than Sure Tech Investments LP. It trades about -0.04 of its total potential returns per unit of risk. Sure Tech Investments LP is currently generating about -0.1 per unit of volatility. If you would invest 73,830 in Sure Tech Investments LP on November 5, 2024 and sell it today you would lose (1,820) from holding Sure Tech Investments LP or give up 2.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Black Sea Property vs. Sure Tech Investments LP
Performance |
| Timeline |
| Black Sea Property |
| Sure Tech Investments |
Black Sea and Sure Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Black Sea and Sure Tech
The main advantage of trading using opposite Black Sea and Sure Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Black Sea position performs unexpectedly, Sure Tech 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 Sure Tech will offset losses from the drop in Sure Tech's long position.| Black Sea vs. One Software Technologies | Black Sea vs. Shagrir Group Vehicle | Black Sea vs. Imed Infinity Medical Limited | Black Sea vs. Hiron Trade Investments Industrial |
| Sure Tech vs. PennantPark Floating Rate | Sure Tech vs. Altshuler Shaham Financial | Sure Tech vs. Generation Capital | Sure Tech vs. Meitav Dash Investments |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |