Correlation Between Bank Central and Praxsyn Corp
Can any of the company-specific risk be diversified away by investing in both Bank Central and Praxsyn Corp 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 Praxsyn Corp 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 Praxsyn Corp, you can compare the effects of market volatilities on Bank Central and Praxsyn Corp 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 Praxsyn Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Central and Praxsyn Corp.
Diversification Opportunities for Bank Central and Praxsyn Corp
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and Praxsyn is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Bank Central Asia and Praxsyn Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Praxsyn 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 Praxsyn Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Praxsyn Corp has no effect on the direction of Bank Central i.e., Bank Central and Praxsyn Corp go up and down completely randomly.
Pair Corralation between Bank Central and Praxsyn Corp
Assuming the 90 days horizon Bank Central is expected to generate 54.88 times less return on investment than Praxsyn Corp. But when comparing it to its historical volatility, Bank Central Asia is 38.21 times less risky than Praxsyn Corp. It trades about 0.03 of its potential returns per unit of risk. Praxsyn Corp is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 0.00 in Praxsyn Corp on August 30, 2024 and sell it today you would earn a total of 0.00 from holding Praxsyn Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 77.78% |
| Values | Daily Returns |
Bank Central Asia vs. Praxsyn Corp
Performance |
| Timeline |
| Bank Central Asia |
| Praxsyn Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bank Central and Praxsyn Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Central and Praxsyn Corp
The main advantage of trading using opposite Bank Central and Praxsyn Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Central position performs unexpectedly, Praxsyn Corp 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 Praxsyn Corp will offset losses from the drop in Praxsyn Corp'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 |
| Praxsyn Corp vs. Ironveld Plc | Praxsyn Corp vs. Pinterest | Praxsyn Corp vs. Summit Environmental | Praxsyn Corp vs. Kaltura |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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