Correlation Between Peninsula and Bull Trading
Can any of the company-specific risk be diversified away by investing in both Peninsula and Bull Trading 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 Peninsula and Bull Trading into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Peninsula Group and Bull Trading And, you can compare the effects of market volatilities on Peninsula and Bull Trading 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 Peninsula with a short position of Bull Trading. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peninsula and Bull Trading.
Diversification Opportunities for Peninsula and Bull Trading
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Peninsula and Bull is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Peninsula Group and Bull Trading And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bull Trading And and Peninsula 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 Peninsula Group are associated (or correlated) with Bull Trading. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bull Trading And has no effect on the direction of Peninsula i.e., Peninsula and Bull Trading go up and down completely randomly.
Pair Corralation between Peninsula and Bull Trading
Assuming the 90 days trading horizon Peninsula Group is expected to generate 0.48 times more return on investment than Bull Trading. However, Peninsula Group is 2.1 times less risky than Bull Trading. It trades about 0.41 of its potential returns per unit of risk. Bull Trading And is currently generating about -0.16 per unit of risk. If you would invest 17,300 in Peninsula Group on August 29, 2024 and sell it today you would earn a total of 3,070 from holding Peninsula Group or generate 17.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Peninsula Group vs. Bull Trading And
Performance |
| Timeline |
| Peninsula Group |
| Bull Trading And |
Peninsula and Bull Trading Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peninsula and Bull Trading
The main advantage of trading using opposite Peninsula and Bull Trading positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peninsula position performs unexpectedly, Bull Trading 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 Bull Trading will offset losses from the drop in Bull Trading's long position.| Peninsula vs. Bank Hapoalim | Peninsula vs. Israel Discount Bank | Peninsula vs. Bezeq Israeli Telecommunication | Peninsula vs. Elbit Systems |
| Bull Trading vs. Victory Supermarket Chain | Bull Trading vs. Abra Information Technologies | Bull Trading vs. Multi Retail Group | Bull Trading vs. Opko Health |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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