Correlation Between Eagle Pointome and BOC Aviation
Can any of the company-specific risk be diversified away by investing in both Eagle Pointome and BOC Aviation 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 Eagle Pointome and BOC Aviation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eagle Pointome and BOC Aviation Limited, you can compare the effects of market volatilities on Eagle Pointome and BOC Aviation 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 Eagle Pointome with a short position of BOC Aviation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Pointome and BOC Aviation.
Diversification Opportunities for Eagle Pointome and BOC Aviation
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Eagle and BOC is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Pointome and BOC Aviation Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BOC Aviation Limited and Eagle Pointome 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 Eagle Pointome are associated (or correlated) with BOC Aviation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BOC Aviation Limited has no effect on the direction of Eagle Pointome i.e., Eagle Pointome and BOC Aviation go up and down completely randomly.
Pair Corralation between Eagle Pointome and BOC Aviation
Considering the 90-day investment horizon Eagle Pointome is expected to generate 27.82 times less return on investment than BOC Aviation. But when comparing it to its historical volatility, Eagle Pointome is 25.42 times less risky than BOC Aviation. It trades about 0.08 of its potential returns per unit of risk. BOC Aviation Limited is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 770.00 in BOC Aviation Limited on November 2, 2024 and sell it today you would lose (22.00) from holding BOC Aviation Limited or give up 2.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 66.8% |
| Values | Daily Returns |
Eagle Pointome vs. BOC Aviation Limited
Performance |
| Timeline |
| Eagle Pointome |
| BOC Aviation Limited |
Eagle Pointome and BOC Aviation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eagle Pointome and BOC Aviation
The main advantage of trading using opposite Eagle Pointome and BOC Aviation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Pointome position performs unexpectedly, BOC Aviation 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 BOC Aviation will offset losses from the drop in BOC Aviation's long position.| Eagle Pointome vs. XAI Octagon Floating | Eagle Pointome vs. Eagle Point Credit | Eagle Pointome vs. Ares Dynamic Credit | Eagle Pointome vs. Kkr Income Opportunities |
| BOC Aviation vs. Alta Equipment Group | BOC Aviation vs. Black Diamond Group | BOC Aviation vs. Ashtead Group plc | BOC Aviation vs. African Discovery Group |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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