Correlation Between Bank Central and SHUAA Partners
Can any of the company-specific risk be diversified away by investing in both Bank Central and SHUAA Partners 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 SHUAA Partners 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 SHUAA Partners Acquisition, you can compare the effects of market volatilities on Bank Central and SHUAA Partners 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 SHUAA Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Central and SHUAA Partners.
Diversification Opportunities for Bank Central and SHUAA Partners
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and SHUAA is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Bank Central Asia and SHUAA Partners Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SHUAA Partners Acqui 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 SHUAA Partners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SHUAA Partners Acqui has no effect on the direction of Bank Central i.e., Bank Central and SHUAA Partners go up and down completely randomly.
Pair Corralation between Bank Central and SHUAA Partners
If you would invest 1,429 in Bank Central Asia on September 1, 2024 and sell it today you would earn a total of 132.00 from holding Bank Central Asia or generate 9.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.79% |
| Values | Daily Returns |
Bank Central Asia vs. SHUAA Partners Acquisition
Performance |
| Timeline |
| Bank Central Asia |
| SHUAA Partners Acqui |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bank Central and SHUAA Partners Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Central and SHUAA Partners
The main advantage of trading using opposite Bank Central and SHUAA Partners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Central position performs unexpectedly, SHUAA Partners 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 SHUAA Partners will offset losses from the drop in SHUAA Partners' long position.| Bank Central vs. Piraeus Bank SA | Bank Central vs. Turkiye Garanti Bankasi | Bank Central vs. Delhi Bank Corp | Bank Central vs. Uwharrie Capital Corp |
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 Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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