Correlation Between Bank Central and Ackermans Van
Can any of the company-specific risk be diversified away by investing in both Bank Central and Ackermans Van 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 Bank Central and Ackermans Van into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Central Asia and Ackermans Van Haaren, you can compare the effects of market volatilities on Bank Central and Ackermans Van 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 Bank Central with a short position of Ackermans Van. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Central and Ackermans Van.
Diversification Opportunities for Bank Central and Ackermans Van
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and Ackermans is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Bank Central Asia and Ackermans Van Haaren in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ackermans Van Haaren and Bank Central 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 Bank Central Asia are associated (or correlated) with Ackermans Van. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ackermans Van Haaren has no effect on the direction of Bank Central i.e., Bank Central and Ackermans Van go up and down completely randomly.
Pair Corralation between Bank Central and Ackermans Van
Assuming the 90 days horizon Bank Central is expected to generate 4.5 times less return on investment than Ackermans Van. In addition to that, Bank Central is 1.28 times more volatile than Ackermans Van Haaren. It trades about 0.02 of its total potential returns per unit of risk. Ackermans Van Haaren is currently generating about 0.1 per unit of volatility. If you would invest 16,518 in Ackermans Van Haaren on September 1, 2024 and sell it today you would earn a total of 2,926 from holding Ackermans Van Haaren or generate 17.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 75.0% |
| Values | Daily Returns |
Bank Central Asia vs. Ackermans Van Haaren
Performance |
| Timeline |
| Bank Central Asia |
| Ackermans Van Haaren |
Bank Central and Ackermans Van Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Central and Ackermans Van
The main advantage of trading using opposite Bank Central and Ackermans Van positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Central position performs unexpectedly, Ackermans Van 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 Ackermans Van will offset losses from the drop in Ackermans Van's long position.| Bank Central vs. Piraeus Bank SA | Bank Central vs. Turkiye Garanti Bankasi | Bank Central vs. Delhi Bank Corp | Bank Central vs. Uwharrie Capital Corp |
| Ackermans Van vs. Canlan Ice Sports | Ackermans Van vs. Delek Logistics Partners | Ackermans Van vs. Norfolk Southern | Ackermans Van vs. Vindicator Silver Lead Mining |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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