Correlation Between Bank Central and Rosecliff Acquisition
Can any of the company-specific risk be diversified away by investing in both Bank Central and Rosecliff 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 Rosecliff 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 Rosecliff Acquisition Corp, you can compare the effects of market volatilities on Bank Central and Rosecliff 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 Rosecliff Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Central and Rosecliff Acquisition.
Diversification Opportunities for Bank Central and Rosecliff Acquisition
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and Rosecliff is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Bank Central Asia and Rosecliff Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rosecliff Acquisition 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 Rosecliff Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rosecliff Acquisition has no effect on the direction of Bank Central i.e., Bank Central and Rosecliff Acquisition go up and down completely randomly.
Pair Corralation between Bank Central and Rosecliff Acquisition
If you would invest 1,429 in Bank Central Asia on August 30, 2024 and sell it today you would earn a total of 121.00 from holding Bank Central Asia or generate 8.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.79% |
| Values | Daily Returns |
Bank Central Asia vs. Rosecliff Acquisition Corp
Performance |
| Timeline |
| Bank Central Asia |
| Rosecliff Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bank Central and Rosecliff Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Central and Rosecliff Acquisition
The main advantage of trading using opposite Bank Central and Rosecliff Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Central position performs unexpectedly, Rosecliff 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 Rosecliff Acquisition will offset losses from the drop in Rosecliff 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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