Correlation Between Wilmington Capital and Pollard Banknote
Can any of the company-specific risk be diversified away by investing in both Wilmington Capital and Pollard Banknote 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 Wilmington Capital and Pollard Banknote into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wilmington Capital Management and Pollard Banknote Limited, you can compare the effects of market volatilities on Wilmington Capital and Pollard Banknote 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 Wilmington Capital with a short position of Pollard Banknote. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wilmington Capital and Pollard Banknote.
Diversification Opportunities for Wilmington Capital and Pollard Banknote
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Wilmington and Pollard is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Wilmington Capital Management and Pollard Banknote Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pollard Banknote and Wilmington Capital 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 Wilmington Capital Management are associated (or correlated) with Pollard Banknote. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pollard Banknote has no effect on the direction of Wilmington Capital i.e., Wilmington Capital and Pollard Banknote go up and down completely randomly.
Pair Corralation between Wilmington Capital and Pollard Banknote
Assuming the 90 days trading horizon Wilmington Capital Management is expected to generate 1.37 times more return on investment than Pollard Banknote. However, Wilmington Capital is 1.37 times more volatile than Pollard Banknote Limited. It trades about 0.04 of its potential returns per unit of risk. Pollard Banknote Limited is currently generating about 0.04 per unit of risk. If you would invest 180.00 in Wilmington Capital Management on August 30, 2024 and sell it today you would earn a total of 101.00 from holding Wilmington Capital Management or generate 56.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wilmington Capital Management vs. Pollard Banknote Limited
Performance |
| Timeline |
| Wilmington Capital |
| Pollard Banknote |
Wilmington Capital and Pollard Banknote Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wilmington Capital and Pollard Banknote
The main advantage of trading using opposite Wilmington Capital and Pollard Banknote positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wilmington Capital position performs unexpectedly, Pollard Banknote 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 Pollard Banknote will offset losses from the drop in Pollard Banknote's long position.| Wilmington Capital vs. Data Communications Management | Wilmington Capital vs. Rogers Communications | Wilmington Capital vs. Verizon Communications CDR | Wilmington Capital vs. National Bank of |
| Pollard Banknote vs. Eros Resources Corp | Pollard Banknote vs. Apple Inc CDR | Pollard Banknote vs. European Residential Real | Pollard Banknote vs. Canadian Utilities Ltd |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |