Correlation Between Rainier Pacific and Bill
Can any of the company-specific risk be diversified away by investing in both Rainier Pacific and Bill 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 Rainier Pacific and Bill into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rainier Pacific Financial and Bill Com Holdings, you can compare the effects of market volatilities on Rainier Pacific and Bill 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 Rainier Pacific with a short position of Bill. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rainier Pacific and Bill.
Diversification Opportunities for Rainier Pacific and Bill
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Rainier and Bill is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Rainier Pacific Financial and Bill Com Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bill Com Holdings and Rainier Pacific 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 Rainier Pacific Financial are associated (or correlated) with Bill. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bill Com Holdings has no effect on the direction of Rainier Pacific i.e., Rainier Pacific and Bill go up and down completely randomly.
Pair Corralation between Rainier Pacific and Bill
If you would invest 5,836 in Bill Com Holdings on September 5, 2024 and sell it today you would earn a total of 3,012 from holding Bill Com Holdings or generate 51.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Rainier Pacific Financial vs. Bill Com Holdings
Performance |
| Timeline |
| Rainier Pacific Financial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Bill Com Holdings |
Rainier Pacific and Bill Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rainier Pacific and Bill
The main advantage of trading using opposite Rainier Pacific and Bill positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rainier Pacific position performs unexpectedly, Bill 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 Bill will offset losses from the drop in Bill's long position.| Rainier Pacific vs. Bill Com Holdings | Rainier Pacific vs. Kaltura | Rainier Pacific vs. Aegean Airlines SA | Rainier Pacific vs. American Airlines Group |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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