Correlation Between Bank Central and Kalo Gold
Can any of the company-specific risk be diversified away by investing in both Bank Central and Kalo Gold 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 Kalo Gold 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 Kalo Gold Holdings, you can compare the effects of market volatilities on Bank Central and Kalo Gold 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 Kalo Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Central and Kalo Gold.
Diversification Opportunities for Bank Central and Kalo Gold
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and Kalo is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Bank Central Asia and Kalo Gold Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kalo Gold Holdings 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 Kalo Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kalo Gold Holdings has no effect on the direction of Bank Central i.e., Bank Central and Kalo Gold go up and down completely randomly.
Pair Corralation between Bank Central and Kalo Gold
Assuming the 90 days horizon Bank Central Asia is expected to under-perform the Kalo Gold. But the pink sheet apears to be less risky and, when comparing its historical volatility, Bank Central Asia is 8.86 times less risky than Kalo Gold. The pink sheet trades about -0.24 of its potential returns per unit of risk. The Kalo Gold Holdings is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 3.01 in Kalo Gold Holdings on September 4, 2024 and sell it today you would lose (0.27) from holding Kalo Gold Holdings or give up 8.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Bank Central Asia vs. Kalo Gold Holdings
Performance |
| Timeline |
| Bank Central Asia |
| Kalo Gold Holdings |
Bank Central and Kalo Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Central and Kalo Gold
The main advantage of trading using opposite Bank Central and Kalo Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Central position performs unexpectedly, Kalo Gold 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 Kalo Gold will offset losses from the drop in Kalo Gold's long position.| Bank Central vs. First Hawaiian | Bank Central vs. Central Pacific Financial | Bank Central vs. Territorial Bancorp | Bank Central vs. Comerica |
| Kalo Gold vs. Big Ridge Gold | Kalo Gold vs. Radisson Mining Resources | Kalo Gold vs. Roscan Gold Corp | Kalo Gold vs. Independence Gold Corp |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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