Correlation Between Bravura Solutions and ImExHS
Can any of the company-specific risk be diversified away by investing in both Bravura Solutions and ImExHS 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 Bravura Solutions and ImExHS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bravura Solutions and ImExHS, you can compare the effects of market volatilities on Bravura Solutions and ImExHS 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 Bravura Solutions with a short position of ImExHS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bravura Solutions and ImExHS.
Diversification Opportunities for Bravura Solutions and ImExHS
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bravura and ImExHS is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Bravura Solutions and ImExHS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ImExHS and Bravura Solutions 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 Bravura Solutions are associated (or correlated) with ImExHS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ImExHS has no effect on the direction of Bravura Solutions i.e., Bravura Solutions and ImExHS go up and down completely randomly.
Pair Corralation between Bravura Solutions and ImExHS
Assuming the 90 days trading horizon Bravura Solutions is expected to generate 0.7 times more return on investment than ImExHS. However, Bravura Solutions is 1.43 times less risky than ImExHS. It trades about 0.08 of its potential returns per unit of risk. ImExHS is currently generating about -0.2 per unit of risk. If you would invest 148.00 in Bravura Solutions on August 28, 2024 and sell it today you would earn a total of 5.00 from holding Bravura Solutions or generate 3.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bravura Solutions vs. ImExHS
Performance |
| Timeline |
| Bravura Solutions |
| ImExHS |
Bravura Solutions and ImExHS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bravura Solutions and ImExHS
The main advantage of trading using opposite Bravura Solutions and ImExHS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bravura Solutions position performs unexpectedly, ImExHS 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 ImExHS will offset losses from the drop in ImExHS's long position.| Bravura Solutions vs. Regal Investment | Bravura Solutions vs. REGAL ASIAN INVESTMENTS | Bravura Solutions vs. Queste Communications | Bravura Solutions vs. Argo Investments |
| ImExHS vs. Charter Hall Retail | ImExHS vs. Global Health | ImExHS vs. Oneview Healthcare PLC | ImExHS vs. Ainsworth Game Technology |
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 Stocks Directory module to find actively traded stocks across global markets.
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