Correlation Between Navigator Global and BKI Investment
Can any of the company-specific risk be diversified away by investing in both Navigator Global 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 Navigator Global and BKI Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Navigator Global Investments and BKI Investment, you can compare the effects of market volatilities on Navigator Global 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 Navigator Global with a short position of BKI Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Navigator Global and BKI Investment.
Diversification Opportunities for Navigator Global and BKI Investment
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Navigator and BKI is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Navigator Global Investments and BKI Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BKI Investment and Navigator Global 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 Navigator Global Investments 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 Navigator Global i.e., Navigator Global and BKI Investment go up and down completely randomly.
Pair Corralation between Navigator Global and BKI Investment
Assuming the 90 days trading horizon Navigator Global Investments is expected to generate 3.0 times more return on investment than BKI Investment. However, Navigator Global is 3.0 times more volatile than BKI Investment. It trades about 0.05 of its potential returns per unit of risk. BKI Investment is currently generating about 0.01 per unit of risk. If you would invest 102.00 in Navigator Global Investments on August 29, 2024 and sell it today you would earn a total of 68.00 from holding Navigator Global Investments or generate 66.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Navigator Global Investments vs. BKI Investment
Performance |
| Timeline |
| Navigator Global Inv |
| BKI Investment |
Navigator Global and BKI Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Navigator Global and BKI Investment
The main advantage of trading using opposite Navigator Global and BKI Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Navigator Global 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.| Navigator Global vs. ACDC Metals | Navigator Global vs. Flagship Investments | Navigator Global vs. Alternative Investment Trust | Navigator Global vs. Platinum Asset Management |
| BKI Investment vs. GQG Partners DRC | BKI Investment vs. MFF Capital Investments | BKI Investment vs. Metrics Master Income | BKI Investment vs. Australian United Investment |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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