Correlation Between Stock Exchange and Bless Asset
Can any of the company-specific risk be diversified away by investing in both Stock Exchange and Bless Asset 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 Stock Exchange and Bless Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stock Exchange Of and Bless Asset Group, you can compare the effects of market volatilities on Stock Exchange and Bless Asset 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 Stock Exchange with a short position of Bless Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stock Exchange and Bless Asset.
Diversification Opportunities for Stock Exchange and Bless Asset
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Stock and Bless is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Stock Exchange Of and Bless Asset Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bless Asset Group and Stock Exchange 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 Stock Exchange Of are associated (or correlated) with Bless Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bless Asset Group has no effect on the direction of Stock Exchange i.e., Stock Exchange and Bless Asset go up and down completely randomly.
Pair Corralation between Stock Exchange and Bless Asset
Assuming the 90 days trading horizon Stock Exchange Of is expected to generate 0.22 times more return on investment than Bless Asset. However, Stock Exchange Of is 4.56 times less risky than Bless Asset. It trades about -0.19 of its potential returns per unit of risk. Bless Asset Group is currently generating about -0.19 per unit of risk. If you would invest 146,417 in Stock Exchange Of on September 2, 2024 and sell it today you would lose (3,663) from holding Stock Exchange Of or give up 2.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stock Exchange Of vs. Bless Asset Group
Performance |
| Timeline |
Stock Exchange and Bless Asset Volatility Contrast
Predicted Return Density |
| Returns |
Stock Exchange Of
Pair trading matchups for Stock Exchange
Bless Asset Group
Pair trading matchups for Bless Asset
Pair Trading with Stock Exchange and Bless Asset
The main advantage of trading using opposite Stock Exchange and Bless Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stock Exchange position performs unexpectedly, Bless Asset 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 Bless Asset will offset losses from the drop in Bless Asset's long position.| Stock Exchange vs. Central Retail | Stock Exchange vs. Interlink Communication Public | Stock Exchange vs. NSL Foods Public | Stock Exchange vs. Central Plaza Hotel |
| Bless Asset vs. Chamni Eye PCL | Bless Asset vs. Bioscience Animal Health | Bless Asset vs. CAZ Public | Bless Asset vs. Chewathai Public |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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