Correlation Between Bank Central and Mason Industrial
Can any of the company-specific risk be diversified away by investing in both Bank Central and Mason Industrial 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 Mason Industrial 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 Mason Industrial Technology, you can compare the effects of market volatilities on Bank Central and Mason Industrial 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 Mason Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Central and Mason Industrial.
Diversification Opportunities for Bank Central and Mason Industrial
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and Mason is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Bank Central Asia and Mason Industrial Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mason Industrial Tec 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 Mason Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mason Industrial Tec has no effect on the direction of Bank Central i.e., Bank Central and Mason Industrial go up and down completely randomly.
Pair Corralation between Bank Central and Mason Industrial
If you would invest 1,014 in Mason Industrial Technology on September 2, 2024 and sell it today you would earn a total of 0.00 from holding Mason Industrial Technology or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Bank Central Asia vs. Mason Industrial Technology
Performance |
| Timeline |
| Bank Central Asia |
| Mason Industrial Tec |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bank Central and Mason Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Central and Mason Industrial
The main advantage of trading using opposite Bank Central and Mason Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Central position performs unexpectedly, Mason Industrial 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 Mason Industrial will offset losses from the drop in Mason Industrial's long position.| Bank Central vs. Nedbank Group | Bank Central vs. Standard Bank Group | Bank Central vs. Kasikornbank Public Co | Bank Central vs. KBC Groep NV |
| Mason Industrial vs. The Joint Corp | Mason Industrial vs. SEI Investments | Mason Industrial vs. Nasdaq Inc | Mason Industrial vs. Summit Hotel Properties |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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