Correlation Between Bank Central and Pacific Coast
Can any of the company-specific risk be diversified away by investing in both Bank Central and Pacific Coast 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 Pacific Coast 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 Pacific Coast Oil, you can compare the effects of market volatilities on Bank Central and Pacific Coast 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 Pacific Coast. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Central and Pacific Coast.
Diversification Opportunities for Bank Central and Pacific Coast
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and Pacific is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bank Central Asia and Pacific Coast Oil in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pacific Coast Oil 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 Pacific Coast. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pacific Coast Oil has no effect on the direction of Bank Central i.e., Bank Central and Pacific Coast go up and down completely randomly.
Pair Corralation between Bank Central and Pacific Coast
If you would invest (100.00) in Pacific Coast Oil on January 13, 2025 and sell it today you would earn a total of 100.00 from holding Pacific Coast Oil or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Bank Central Asia vs. Pacific Coast Oil
Performance |
| Timeline |
| Bank Central Asia |
| Pacific Coast Oil |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Bank Central and Pacific Coast Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Central and Pacific Coast
The main advantage of trading using opposite Bank Central and Pacific Coast positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Central position performs unexpectedly, Pacific Coast 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 Pacific Coast will offset losses from the drop in Pacific Coast'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 |
| Pacific Coast vs. Gulf Keystone Petroleum | Pacific Coast vs. ShaMaran Petroleum Corp | Pacific Coast vs. Africa Energy Corp | Pacific Coast vs. Saturn Oil Gas |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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