Correlation Between Red Cat and Bim Birlesik
Can any of the company-specific risk be diversified away by investing in both Red Cat and Bim Birlesik 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 Red Cat and Bim Birlesik into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Red Cat Holdings and Bim Birlesik Magazalar, you can compare the effects of market volatilities on Red Cat and Bim Birlesik 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 Red Cat with a short position of Bim Birlesik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Red Cat and Bim Birlesik.
Diversification Opportunities for Red Cat and Bim Birlesik
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Red and Bim is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Red Cat Holdings and Bim Birlesik Magazalar in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bim Birlesik Magazalar and Red Cat 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 Red Cat Holdings are associated (or correlated) with Bim Birlesik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bim Birlesik Magazalar has no effect on the direction of Red Cat i.e., Red Cat and Bim Birlesik go up and down completely randomly.
Pair Corralation between Red Cat and Bim Birlesik
Given the investment horizon of 90 days Red Cat Holdings is expected to generate 1.38 times more return on investment than Bim Birlesik. However, Red Cat is 1.38 times more volatile than Bim Birlesik Magazalar. It trades about 0.16 of its potential returns per unit of risk. Bim Birlesik Magazalar is currently generating about 0.1 per unit of risk. If you would invest 89.00 in Red Cat Holdings on August 27, 2024 and sell it today you would earn a total of 808.00 from holding Red Cat Holdings or generate 907.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Red Cat Holdings vs. Bim Birlesik Magazalar
Performance |
| Timeline |
| Red Cat Holdings |
| Bim Birlesik Magazalar |
Red Cat and Bim Birlesik Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Red Cat and Bim Birlesik
The main advantage of trading using opposite Red Cat and Bim Birlesik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Red Cat position performs unexpectedly, Bim Birlesik 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 Bim Birlesik will offset losses from the drop in Bim Birlesik's long position.| Red Cat vs. Quantum Computing | Red Cat vs. Rigetti Computing | Red Cat vs. D Wave Quantum | Red Cat vs. AstroNova |
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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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