Correlation Between British Amer and Computer Modelling
Can any of the company-specific risk be diversified away by investing in both British Amer and Computer Modelling 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 British Amer and Computer Modelling into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between biOasis Technologies and Computer Modelling Group, you can compare the effects of market volatilities on British Amer and Computer Modelling 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 British Amer with a short position of Computer Modelling. Check out your portfolio center. Please also check ongoing floating volatility patterns of British Amer and Computer Modelling.
Diversification Opportunities for British Amer and Computer Modelling
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between British and Computer is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding biOasis Technologies and Computer Modelling Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Computer Modelling and British Amer 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 biOasis Technologies are associated (or correlated) with Computer Modelling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Computer Modelling has no effect on the direction of British Amer i.e., British Amer and Computer Modelling go up and down completely randomly.
Pair Corralation between British Amer and Computer Modelling
Assuming the 90 days horizon biOasis Technologies is expected to generate 41.49 times more return on investment than Computer Modelling. However, British Amer is 41.49 times more volatile than Computer Modelling Group. It trades about 0.09 of its potential returns per unit of risk. Computer Modelling Group is currently generating about 0.06 per unit of risk. If you would invest 18.00 in biOasis Technologies on September 2, 2024 and sell it today you would earn a total of 108.00 from holding biOasis Technologies or generate 600.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.4% |
| Values | Daily Returns |
biOasis Technologies vs. Computer Modelling Group
Performance |
| Timeline |
| biOasis Technologies |
| Computer Modelling |
British Amer and Computer Modelling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with British Amer and Computer Modelling
The main advantage of trading using opposite British Amer and Computer Modelling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if British Amer position performs unexpectedly, Computer Modelling 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 Computer Modelling will offset losses from the drop in Computer Modelling's long position.| British Amer vs. Canadian Imperial Bank | British Amer vs. Pollard Banknote Limited | British Amer vs. US Financial 15 | British Amer vs. High Liner Foods |
| Computer Modelling vs. Moovly Media | Computer Modelling vs. Lite Access Technologies | Computer Modelling vs. Braille Energy Systems | Computer Modelling vs. Solar Alliance Energy |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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