Correlation Between Gratitude Infinite and BJC Heavy
Can any of the company-specific risk be diversified away by investing in both Gratitude Infinite and BJC Heavy 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 Gratitude Infinite and BJC Heavy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gratitude Infinite Public and BJC Heavy Industries, you can compare the effects of market volatilities on Gratitude Infinite and BJC Heavy 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 Gratitude Infinite with a short position of BJC Heavy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gratitude Infinite and BJC Heavy.
Diversification Opportunities for Gratitude Infinite and BJC Heavy
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gratitude and BJC is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Gratitude Infinite Public and BJC Heavy Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BJC Heavy Industries and Gratitude Infinite 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 Gratitude Infinite Public are associated (or correlated) with BJC Heavy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BJC Heavy Industries has no effect on the direction of Gratitude Infinite i.e., Gratitude Infinite and BJC Heavy go up and down completely randomly.
Pair Corralation between Gratitude Infinite and BJC Heavy
Assuming the 90 days trading horizon Gratitude Infinite Public is expected to under-perform the BJC Heavy. But the stock apears to be less risky and, when comparing its historical volatility, Gratitude Infinite Public is 13.82 times less risky than BJC Heavy. The stock trades about -0.01 of its potential returns per unit of risk. The BJC Heavy Industries is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 155.00 in BJC Heavy Industries on August 30, 2024 and sell it today you would lose (35.00) from holding BJC Heavy Industries or give up 22.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gratitude Infinite Public vs. BJC Heavy Industries
Performance |
| Timeline |
| Gratitude Infinite Public |
| BJC Heavy Industries |
Gratitude Infinite and BJC Heavy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gratitude Infinite and BJC Heavy
The main advantage of trading using opposite Gratitude Infinite and BJC Heavy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gratitude Infinite position performs unexpectedly, BJC Heavy 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 BJC Heavy will offset losses from the drop in BJC Heavy's long position.| Gratitude Infinite vs. MCS Steel Public | Gratitude Infinite vs. Asia Plus Group | Gratitude Infinite vs. Lalin Property Public | Gratitude Infinite vs. Lam Soon Public |
| BJC Heavy vs. CH Karnchang Public | BJC Heavy vs. Asia Aviation Public | BJC Heavy vs. AAPICO Hitech Public | BJC Heavy vs. GFPT Public |
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.
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