Correlation Between Selan Exploration and Bigbloc Construction
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By analyzing existing cross correlation between Selan Exploration Technology and Bigbloc Construction Limited, you can compare the effects of market volatilities on Selan Exploration and Bigbloc Construction 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 Selan Exploration with a short position of Bigbloc Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Selan Exploration and Bigbloc Construction.
Diversification Opportunities for Selan Exploration and Bigbloc Construction
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Selan and Bigbloc is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Selan Exploration Technology and Bigbloc Construction Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bigbloc Construction and Selan Exploration 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 Selan Exploration Technology are associated (or correlated) with Bigbloc Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bigbloc Construction has no effect on the direction of Selan Exploration i.e., Selan Exploration and Bigbloc Construction go up and down completely randomly.
Pair Corralation between Selan Exploration and Bigbloc Construction
Assuming the 90 days trading horizon Selan Exploration Technology is expected to generate 0.9 times more return on investment than Bigbloc Construction. However, Selan Exploration Technology is 1.11 times less risky than Bigbloc Construction. It trades about 0.01 of its potential returns per unit of risk. Bigbloc Construction Limited is currently generating about -0.09 per unit of risk. If you would invest 91,200 in Selan Exploration Technology on September 12, 2024 and sell it today you would lose (45.00) from holding Selan Exploration Technology or give up 0.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Selan Exploration Technology vs. Bigbloc Construction Limited
Performance |
| Timeline |
| Selan Exploration |
| Bigbloc Construction |
Selan Exploration and Bigbloc Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Selan Exploration and Bigbloc Construction
The main advantage of trading using opposite Selan Exploration and Bigbloc Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Selan Exploration position performs unexpectedly, Bigbloc Construction 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 Bigbloc Construction will offset losses from the drop in Bigbloc Construction's long position.| Selan Exploration vs. India Glycols Limited | Selan Exploration vs. Indo Borax Chemicals | Selan Exploration vs. Kingfa Science Technology | Selan Exploration vs. Alkali Metals Limited |
| Bigbloc Construction vs. Reliance Industries Limited | Bigbloc Construction vs. Oil Natural Gas | Bigbloc Construction vs. Indo Borax Chemicals | Bigbloc Construction vs. Kingfa Science Technology |
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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