Correlation Between Bank Central and Omnilit Acquisition
Can any of the company-specific risk be diversified away by investing in both Bank Central and Omnilit Acquisition 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 Omnilit Acquisition 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 Omnilit Acquisition Corp, you can compare the effects of market volatilities on Bank Central and Omnilit Acquisition 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 Omnilit Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Central and Omnilit Acquisition.
Diversification Opportunities for Bank Central and Omnilit Acquisition
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and Omnilit is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Bank Central Asia and Omnilit Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Omnilit Acquisition Corp 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 Omnilit Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Omnilit Acquisition Corp has no effect on the direction of Bank Central i.e., Bank Central and Omnilit Acquisition go up and down completely randomly.
Pair Corralation between Bank Central and Omnilit Acquisition
If you would invest 1,049 in Omnilit Acquisition Corp on November 2, 2024 and sell it today you would earn a total of 0.00 from holding Omnilit Acquisition Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 5.0% |
| Values | Daily Returns |
Bank Central Asia vs. Omnilit Acquisition Corp
Performance |
| Timeline |
| Bank Central Asia |
| Omnilit Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bank Central and Omnilit Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Central and Omnilit Acquisition
The main advantage of trading using opposite Bank Central and Omnilit Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Central position performs unexpectedly, Omnilit Acquisition 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 Omnilit Acquisition will offset losses from the drop in Omnilit Acquisition'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 |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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