Correlation Between Converge Information and Bank of the
Can any of the company-specific risk be diversified away by investing in both Converge Information and Bank of the 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 Converge Information and Bank of the into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Converge Information Communications and Bank of the, you can compare the effects of market volatilities on Converge Information and Bank of the 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 Converge Information with a short position of Bank of the. Check out your portfolio center. Please also check ongoing floating volatility patterns of Converge Information and Bank of the.
Diversification Opportunities for Converge Information and Bank of the
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Converge and Bank is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Converge Information Communica and Bank of the in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of the and Converge Information 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 Converge Information Communications are associated (or correlated) with Bank of the. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of the has no effect on the direction of Converge Information i.e., Converge Information and Bank of the go up and down completely randomly.
Pair Corralation between Converge Information and Bank of the
Assuming the 90 days trading horizon Converge Information is expected to generate 2.27 times less return on investment than Bank of the. In addition to that, Converge Information is 1.4 times more volatile than Bank of the. It trades about 0.01 of its total potential returns per unit of risk. Bank of the is currently generating about 0.04 per unit of volatility. If you would invest 9,496 in Bank of the on October 25, 2024 and sell it today you would earn a total of 2,904 from holding Bank of the or generate 30.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Converge Information Communica vs. Bank of the
Performance |
| Timeline |
| Converge Information |
| Bank of the |
Converge Information and Bank of the Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Converge Information and Bank of the
The main advantage of trading using opposite Converge Information and Bank of the positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Converge Information position performs unexpectedly, Bank of the 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 Bank of the will offset losses from the drop in Bank of the's long position.| Converge Information vs. BDO Unibank | Converge Information vs. National Reinsurance | Converge Information vs. Rizal Commercial Banking | Converge Information vs. Semirara Mining Corp |
| Bank of the vs. Metropolitan Bank Trust | Bank of the vs. National Reinsurance | Bank of the vs. STI Education Systems | Bank of the vs. Integrated Micro Electronics |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |