Correlation Between Mach7 Technologies and BKI Investment
Can any of the company-specific risk be diversified away by investing in both Mach7 Technologies and BKI Investment 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 Mach7 Technologies and BKI Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mach7 Technologies and BKI Investment, you can compare the effects of market volatilities on Mach7 Technologies and BKI Investment 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 Mach7 Technologies with a short position of BKI Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mach7 Technologies and BKI Investment.
Diversification Opportunities for Mach7 Technologies and BKI Investment
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Mach7 and BKI is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Mach7 Technologies and BKI Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BKI Investment and Mach7 Technologies 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 Mach7 Technologies are associated (or correlated) with BKI Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BKI Investment has no effect on the direction of Mach7 Technologies i.e., Mach7 Technologies and BKI Investment go up and down completely randomly.
Pair Corralation between Mach7 Technologies and BKI Investment
Assuming the 90 days trading horizon Mach7 Technologies is expected to under-perform the BKI Investment. In addition to that, Mach7 Technologies is 7.15 times more volatile than BKI Investment. It trades about -0.37 of its total potential returns per unit of risk. BKI Investment is currently generating about 0.05 per unit of volatility. If you would invest 172.00 in BKI Investment on August 30, 2024 and sell it today you would earn a total of 1.00 from holding BKI Investment or generate 0.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mach7 Technologies vs. BKI Investment
Performance |
| Timeline |
| Mach7 Technologies |
| BKI Investment |
Mach7 Technologies and BKI Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mach7 Technologies and BKI Investment
The main advantage of trading using opposite Mach7 Technologies and BKI Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mach7 Technologies position performs unexpectedly, BKI Investment 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 BKI Investment will offset losses from the drop in BKI Investment's long position.| Mach7 Technologies vs. Nufarm Finance NZ | Mach7 Technologies vs. Flagship Investments | Mach7 Technologies vs. Regal Investment | Mach7 Technologies vs. Black Rock Mining |
| BKI Investment vs. Clime Investment Management | BKI Investment vs. Bailador Technology Invest | BKI Investment vs. Hudson Investment Group | BKI Investment vs. Macquarie Technology 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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