Correlation Between BANK CENTRAL and Inmobiliaria Colonial
Can any of the company-specific risk be diversified away by investing in both BANK CENTRAL and Inmobiliaria Colonial 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 BANK CENTRAL and Inmobiliaria Colonial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BANK CENTRAL ASIA and Inmobiliaria Colonial SOCIMI, you can compare the effects of market volatilities on BANK CENTRAL and Inmobiliaria Colonial 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 BANK CENTRAL with a short position of Inmobiliaria Colonial. Check out your portfolio center. Please also check ongoing floating volatility patterns of BANK CENTRAL and Inmobiliaria Colonial.
Diversification Opportunities for BANK CENTRAL and Inmobiliaria Colonial
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BANK and Inmobiliaria is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding BANK CENTRAL ASIA and Inmobiliaria Colonial SOCIMI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inmobiliaria Colonial and BANK CENTRAL 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 BANK CENTRAL ASIA are associated (or correlated) with Inmobiliaria Colonial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inmobiliaria Colonial has no effect on the direction of BANK CENTRAL i.e., BANK CENTRAL and Inmobiliaria Colonial go up and down completely randomly.
Pair Corralation between BANK CENTRAL and Inmobiliaria Colonial
Assuming the 90 days trading horizon BANK CENTRAL ASIA is expected to generate 0.9 times more return on investment than Inmobiliaria Colonial. However, BANK CENTRAL ASIA is 1.11 times less risky than Inmobiliaria Colonial. It trades about 0.02 of its potential returns per unit of risk. Inmobiliaria Colonial SOCIMI is currently generating about 0.01 per unit of risk. If you would invest 51.00 in BANK CENTRAL ASIA on September 2, 2024 and sell it today you would earn a total of 6.00 from holding BANK CENTRAL ASIA or generate 11.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BANK CENTRAL ASIA vs. Inmobiliaria Colonial SOCIMI
Performance |
| Timeline |
| BANK CENTRAL ASIA |
| Inmobiliaria Colonial |
BANK CENTRAL and Inmobiliaria Colonial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BANK CENTRAL and Inmobiliaria Colonial
The main advantage of trading using opposite BANK CENTRAL and Inmobiliaria Colonial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BANK CENTRAL position performs unexpectedly, Inmobiliaria Colonial 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 Inmobiliaria Colonial will offset losses from the drop in Inmobiliaria Colonial's long position.| BANK CENTRAL vs. SIVERS SEMICONDUCTORS AB | BANK CENTRAL vs. Darden Restaurants | BANK CENTRAL vs. Reliance Steel Aluminum | BANK CENTRAL vs. Q2M Managementberatung AG |
| Inmobiliaria Colonial vs. Superior Plus Corp | Inmobiliaria Colonial vs. NMI Holdings | Inmobiliaria Colonial vs. Origin Agritech | Inmobiliaria Colonial vs. SIVERS SEMICONDUCTORS AB |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |