Correlation Between Silly Monks and Bodhi Tree
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By analyzing existing cross correlation between Silly Monks Entertainment and Bodhi Tree Multimedia, you can compare the effects of market volatilities on Silly Monks and Bodhi Tree 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 Silly Monks with a short position of Bodhi Tree. Check out your portfolio center. Please also check ongoing floating volatility patterns of Silly Monks and Bodhi Tree.
Diversification Opportunities for Silly Monks and Bodhi Tree
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Silly and Bodhi is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Silly Monks Entertainment and Bodhi Tree Multimedia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bodhi Tree Multimedia and Silly Monks 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 Silly Monks Entertainment are associated (or correlated) with Bodhi Tree. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bodhi Tree Multimedia has no effect on the direction of Silly Monks i.e., Silly Monks and Bodhi Tree go up and down completely randomly.
Pair Corralation between Silly Monks and Bodhi Tree
Assuming the 90 days trading horizon Silly Monks Entertainment is expected to under-perform the Bodhi Tree. But the stock apears to be less risky and, when comparing its historical volatility, Silly Monks Entertainment is 22.88 times less risky than Bodhi Tree. The stock trades about -0.01 of its potential returns per unit of risk. The Bodhi Tree Multimedia is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 838.00 in Bodhi Tree Multimedia on September 2, 2024 and sell it today you would earn a total of 377.00 from holding Bodhi Tree Multimedia or generate 44.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Silly Monks Entertainment vs. Bodhi Tree Multimedia
Performance |
| Timeline |
| Silly Monks Entertainment |
| Bodhi Tree Multimedia |
Silly Monks and Bodhi Tree Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Silly Monks and Bodhi Tree
The main advantage of trading using opposite Silly Monks and Bodhi Tree positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Silly Monks position performs unexpectedly, Bodhi Tree 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 Bodhi Tree will offset losses from the drop in Bodhi Tree's long position.| Silly Monks vs. Clean Science and | Silly Monks vs. Vertoz Advertising Limited | Silly Monks vs. Ratnamani Metals Tubes | Silly Monks vs. Styrenix Performance Materials |
| Bodhi Tree vs. Cantabil Retail India | Bodhi Tree vs. Jaypee Infratech Limited | Bodhi Tree vs. Styrenix Performance Materials | Bodhi Tree vs. Future Retail Limited |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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