Correlation Between Foxby Corp and Bimini Capital
Can any of the company-specific risk be diversified away by investing in both Foxby Corp and Bimini Capital 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 Foxby Corp and Bimini Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Foxby Corp and Bimini Capital Management, you can compare the effects of market volatilities on Foxby Corp and Bimini Capital 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 Foxby Corp with a short position of Bimini Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Foxby Corp and Bimini Capital.
Diversification Opportunities for Foxby Corp and Bimini Capital
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Foxby and Bimini is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Foxby Corp and Bimini Capital Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bimini Capital Management and Foxby Corp 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 Foxby Corp are associated (or correlated) with Bimini Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bimini Capital Management has no effect on the direction of Foxby Corp i.e., Foxby Corp and Bimini Capital go up and down completely randomly.
Pair Corralation between Foxby Corp and Bimini Capital
If you would invest 85.00 in Bimini Capital Management on August 29, 2024 and sell it today you would earn a total of 23.00 from holding Bimini Capital Management or generate 27.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Foxby Corp vs. Bimini Capital Management
Performance |
| Timeline |
| Foxby Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Bimini Capital Management |
Foxby Corp and Bimini Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Foxby Corp and Bimini Capital
The main advantage of trading using opposite Foxby Corp and Bimini Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Foxby Corp position performs unexpectedly, Bimini Capital 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 Bimini Capital will offset losses from the drop in Bimini Capital's long position.| Foxby Corp vs. Aberdeen International | Foxby Corp vs. Bimini Capital Management | Foxby Corp vs. Eagle Capital Growth | Foxby Corp vs. Western Asset Municipal |
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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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