Correlation Between Suntrust Home and Benguet Corp
Can any of the company-specific risk be diversified away by investing in both Suntrust Home and Benguet Corp 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 Suntrust Home and Benguet Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Suntrust Home Developers and Benguet Corp A, you can compare the effects of market volatilities on Suntrust Home and Benguet Corp 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 Suntrust Home with a short position of Benguet Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suntrust Home and Benguet Corp.
Diversification Opportunities for Suntrust Home and Benguet Corp
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Suntrust and Benguet is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Suntrust Home Developers and Benguet Corp A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Benguet Corp A and Suntrust Home 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 Suntrust Home Developers are associated (or correlated) with Benguet Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Benguet Corp A has no effect on the direction of Suntrust Home i.e., Suntrust Home and Benguet Corp go up and down completely randomly.
Pair Corralation between Suntrust Home and Benguet Corp
Assuming the 90 days trading horizon Suntrust Home Developers is expected to under-perform the Benguet Corp. But the stock apears to be less risky and, when comparing its historical volatility, Suntrust Home Developers is 1.26 times less risky than Benguet Corp. The stock trades about -0.04 of its potential returns per unit of risk. The Benguet Corp A is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 406.00 in Benguet Corp A on September 3, 2024 and sell it today you would lose (56.00) from holding Benguet Corp A or give up 13.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 94.59% |
| Values | Daily Returns |
Suntrust Home Developers vs. Benguet Corp A
Performance |
| Timeline |
| Suntrust Home Developers |
| Benguet Corp A |
Suntrust Home and Benguet Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suntrust Home and Benguet Corp
The main advantage of trading using opposite Suntrust Home and Benguet Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suntrust Home position performs unexpectedly, Benguet Corp 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 Benguet Corp will offset losses from the drop in Benguet Corp's long position.| Suntrust Home vs. ATN Holdings | Suntrust Home vs. GT Capital Holdings | Suntrust Home vs. Allhome Corp | Suntrust Home vs. Jollibee Foods Corp |
| Benguet Corp vs. Apex Mining Co | Benguet Corp vs. Suntrust Home Developers | Benguet Corp vs. Converge Information Communications | Benguet Corp vs. Semirara Mining Corp |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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