Correlation Between Brompton Lifeco and Wilmington Capital
Can any of the company-specific risk be diversified away by investing in both Brompton Lifeco and Wilmington 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 Brompton Lifeco and Wilmington Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brompton Lifeco Split and Wilmington Capital Management, you can compare the effects of market volatilities on Brompton Lifeco and Wilmington 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 Brompton Lifeco with a short position of Wilmington Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brompton Lifeco and Wilmington Capital.
Diversification Opportunities for Brompton Lifeco and Wilmington Capital
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Brompton and Wilmington is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Brompton Lifeco Split and Wilmington Capital Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wilmington Capital and Brompton Lifeco 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 Brompton Lifeco Split are associated (or correlated) with Wilmington Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wilmington Capital has no effect on the direction of Brompton Lifeco i.e., Brompton Lifeco and Wilmington Capital go up and down completely randomly.
Pair Corralation between Brompton Lifeco and Wilmington Capital
Assuming the 90 days trading horizon Brompton Lifeco Split is expected to generate 0.41 times more return on investment than Wilmington Capital. However, Brompton Lifeco Split is 2.46 times less risky than Wilmington Capital. It trades about 0.21 of its potential returns per unit of risk. Wilmington Capital Management is currently generating about -0.3 per unit of risk. If you would invest 973.00 in Brompton Lifeco Split on September 12, 2024 and sell it today you would earn a total of 55.00 from holding Brompton Lifeco Split or generate 5.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Brompton Lifeco Split vs. Wilmington Capital Management
Performance |
| Timeline |
| Brompton Lifeco Split |
| Wilmington Capital |
Brompton Lifeco and Wilmington Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brompton Lifeco and Wilmington Capital
The main advantage of trading using opposite Brompton Lifeco and Wilmington Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brompton Lifeco position performs unexpectedly, Wilmington 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 Wilmington Capital will offset losses from the drop in Wilmington Capital's long position.| Brompton Lifeco vs. Life Banc Split | Brompton Lifeco vs. Brompton Split Banc | Brompton Lifeco vs. Dividend Growth Split | Brompton Lifeco vs. Dividend 15 Split |
| Wilmington Capital vs. Brompton Lifeco Split | Wilmington Capital vs. North American Financial | Wilmington Capital vs. Prime Dividend Corp | Wilmington Capital vs. Financial 15 Split |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |