Correlation Between SCCB and Babcock Wilcox
Can any of the company-specific risk be diversified away by investing in both SCCB and Babcock Wilcox 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 SCCB and Babcock Wilcox into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SCCB and Babcock Wilcox Enterprises,, you can compare the effects of market volatilities on SCCB and Babcock Wilcox 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 SCCB with a short position of Babcock Wilcox. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCCB and Babcock Wilcox.
Diversification Opportunities for SCCB and Babcock Wilcox
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SCCB and Babcock is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding SCCB and Babcock Wilcox Enterprises, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Babcock Wilcox Enter and SCCB 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 SCCB are associated (or correlated) with Babcock Wilcox. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Babcock Wilcox Enter has no effect on the direction of SCCB i.e., SCCB and Babcock Wilcox go up and down completely randomly.
Pair Corralation between SCCB and Babcock Wilcox
If you would invest 2,498 in SCCB on August 28, 2024 and sell it today you would earn a total of 0.00 from holding SCCB or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 4.76% |
| Values | Daily Returns |
SCCB vs. Babcock Wilcox Enterprises,
Performance |
| Timeline |
| SCCB |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Babcock Wilcox Enter |
SCCB and Babcock Wilcox Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SCCB and Babcock Wilcox
The main advantage of trading using opposite SCCB and Babcock Wilcox positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCCB position performs unexpectedly, Babcock Wilcox 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 Babcock Wilcox will offset losses from the drop in Babcock Wilcox's long position.| SCCB vs. Sachem Capital Corp | SCCB vs. Sachem Capital Corp | SCCB vs. B Riley Financial | SCCB vs. Eagle Point Credit |
| Babcock Wilcox vs. Harrow Health 8625 | Babcock Wilcox vs. Babcock Wilcox Enterprises | Babcock Wilcox vs. B Riley Financial | Babcock Wilcox vs. Eagle Point Credit |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |