Correlation Between Event Hospitality and Bendigo
Can any of the company-specific risk be diversified away by investing in both Event Hospitality and Bendigo 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 Event Hospitality and Bendigo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Event Hospitality and and Bendigo And Adelaide, you can compare the effects of market volatilities on Event Hospitality and Bendigo 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 Event Hospitality with a short position of Bendigo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Event Hospitality and Bendigo.
Diversification Opportunities for Event Hospitality and Bendigo
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Event and Bendigo is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Event Hospitality and and Bendigo And Adelaide in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bendigo And Adelaide and Event Hospitality 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 Event Hospitality and are associated (or correlated) with Bendigo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bendigo And Adelaide has no effect on the direction of Event Hospitality i.e., Event Hospitality and Bendigo go up and down completely randomly.
Pair Corralation between Event Hospitality and Bendigo
Assuming the 90 days trading horizon Event Hospitality is expected to generate 8.69 times less return on investment than Bendigo. In addition to that, Event Hospitality is 1.37 times more volatile than Bendigo And Adelaide. It trades about 0.01 of its total potential returns per unit of risk. Bendigo And Adelaide is currently generating about 0.08 per unit of volatility. If you would invest 862.00 in Bendigo And Adelaide on September 19, 2024 and sell it today you would earn a total of 485.00 from holding Bendigo And Adelaide or generate 56.26% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Event Hospitality and vs. Bendigo And Adelaide
Performance |
Timeline |
Event Hospitality |
Bendigo And Adelaide |
Event Hospitality and Bendigo Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Event Hospitality and Bendigo
The main advantage of trading using opposite Event Hospitality and Bendigo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Event Hospitality position performs unexpectedly, Bendigo 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 Bendigo will offset losses from the drop in Bendigo's long position.Event Hospitality vs. Toys R Us | Event Hospitality vs. Mayfield Childcare | Event Hospitality vs. Qbe Insurance Group | Event Hospitality vs. Iron Road |
Bendigo vs. Event Hospitality and | Bendigo vs. Sky Metals | Bendigo vs. Centaurus Metals | Bendigo vs. Black Rock Mining |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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