Correlation Between Navakij Insurance and BPS TECHNOLOGY
Can any of the company-specific risk be diversified away by investing in both Navakij Insurance and BPS TECHNOLOGY 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 Navakij Insurance and BPS TECHNOLOGY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Navakij Insurance and BPS TECHNOLOGY PUBLIC, you can compare the effects of market volatilities on Navakij Insurance and BPS TECHNOLOGY 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 Navakij Insurance with a short position of BPS TECHNOLOGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Navakij Insurance and BPS TECHNOLOGY.
Diversification Opportunities for Navakij Insurance and BPS TECHNOLOGY
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Navakij and BPS is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding The Navakij Insurance and BPS TECHNOLOGY PUBLIC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BPS TECHNOLOGY PUBLIC and Navakij Insurance 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 The Navakij Insurance are associated (or correlated) with BPS TECHNOLOGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BPS TECHNOLOGY PUBLIC has no effect on the direction of Navakij Insurance i.e., Navakij Insurance and BPS TECHNOLOGY go up and down completely randomly.
Pair Corralation between Navakij Insurance and BPS TECHNOLOGY
Assuming the 90 days trading horizon The Navakij Insurance is expected to generate 0.37 times more return on investment than BPS TECHNOLOGY. However, The Navakij Insurance is 2.73 times less risky than BPS TECHNOLOGY. It trades about -0.01 of its potential returns per unit of risk. BPS TECHNOLOGY PUBLIC is currently generating about -0.03 per unit of risk. If you would invest 2,490 in The Navakij Insurance on October 9, 2024 and sell it today you would lose (10.00) from holding The Navakij Insurance or give up 0.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Navakij Insurance vs. BPS TECHNOLOGY PUBLIC
Performance |
| Timeline |
| Navakij Insurance |
| BPS TECHNOLOGY PUBLIC |
Navakij Insurance and BPS TECHNOLOGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Navakij Insurance and BPS TECHNOLOGY
The main advantage of trading using opposite Navakij Insurance and BPS TECHNOLOGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Navakij Insurance position performs unexpectedly, BPS TECHNOLOGY 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 BPS TECHNOLOGY will offset losses from the drop in BPS TECHNOLOGY's long position.| Navakij Insurance vs. Ocean Glass Public | Navakij Insurance vs. Pan Asia Footwear | Navakij Insurance vs. Nonthavej Hospital Public | Navakij Insurance vs. Newcity Public |
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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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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