Correlation Between Panther Metals and Bankers Investment
Can any of the company-specific risk be diversified away by investing in both Panther Metals and Bankers 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 Panther Metals and Bankers Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Panther Metals PLC and Bankers Investment Trust, you can compare the effects of market volatilities on Panther Metals and Bankers 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 Panther Metals with a short position of Bankers Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panther Metals and Bankers Investment.
Diversification Opportunities for Panther Metals and Bankers Investment
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Panther and Bankers is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Panther Metals PLC and Bankers Investment Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bankers Investment Trust and Panther Metals 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 Panther Metals PLC are associated (or correlated) with Bankers Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bankers Investment Trust has no effect on the direction of Panther Metals i.e., Panther Metals and Bankers Investment go up and down completely randomly.
Pair Corralation between Panther Metals and Bankers Investment
Assuming the 90 days trading horizon Panther Metals PLC is expected to generate 5.74 times more return on investment than Bankers Investment. However, Panther Metals is 5.74 times more volatile than Bankers Investment Trust. It trades about 0.03 of its potential returns per unit of risk. Bankers Investment Trust is currently generating about 0.07 per unit of risk. If you would invest 9,000 in Panther Metals PLC on September 12, 2024 and sell it today you would earn a total of 500.00 from holding Panther Metals PLC or generate 5.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.87% |
| Values | Daily Returns |
Panther Metals PLC vs. Bankers Investment Trust
Performance |
| Timeline |
| Panther Metals PLC |
| Bankers Investment Trust |
Panther Metals and Bankers Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Panther Metals and Bankers Investment
The main advantage of trading using opposite Panther Metals and Bankers Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panther Metals position performs unexpectedly, Bankers 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 Bankers Investment will offset losses from the drop in Bankers Investment's long position.| Panther Metals vs. Givaudan SA | Panther Metals vs. Antofagasta PLC | Panther Metals vs. Ferrexpo PLC | Panther Metals vs. Atalaya Mining |
| Bankers Investment vs. Liberty Media Corp | Bankers Investment vs. Panther Metals PLC | Bankers Investment vs. Centaur Media | Bankers Investment vs. GoldMining |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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