Correlation Between BIT Computer and Samsung Special
Can any of the company-specific risk be diversified away by investing in both BIT Computer and Samsung Special 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 BIT Computer and Samsung Special into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BIT Computer Co and Samsung Special Purpose, you can compare the effects of market volatilities on BIT Computer and Samsung Special 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 BIT Computer with a short position of Samsung Special. Check out your portfolio center. Please also check ongoing floating volatility patterns of BIT Computer and Samsung Special.
Diversification Opportunities for BIT Computer and Samsung Special
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BIT and Samsung is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding BIT Computer Co and Samsung Special Purpose in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Special Purpose and BIT Computer 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 BIT Computer Co are associated (or correlated) with Samsung Special. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samsung Special Purpose has no effect on the direction of BIT Computer i.e., BIT Computer and Samsung Special go up and down completely randomly.
Pair Corralation between BIT Computer and Samsung Special
Assuming the 90 days trading horizon BIT Computer Co is expected to generate 6.91 times more return on investment than Samsung Special. However, BIT Computer is 6.91 times more volatile than Samsung Special Purpose. It trades about 0.03 of its potential returns per unit of risk. Samsung Special Purpose is currently generating about -0.04 per unit of risk. If you would invest 480,814 in BIT Computer Co on October 24, 2024 and sell it today you would earn a total of 12,686 from holding BIT Computer Co or generate 2.64% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 98.39% |
Values | Daily Returns |
BIT Computer Co vs. Samsung Special Purpose
Performance |
Timeline |
BIT Computer |
Samsung Special Purpose |
BIT Computer and Samsung Special Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with BIT Computer and Samsung Special
The main advantage of trading using opposite BIT Computer and Samsung Special positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BIT Computer position performs unexpectedly, Samsung Special 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 Samsung Special will offset losses from the drop in Samsung Special's long position.BIT Computer vs. Alton Sports CoLtd | BIT Computer vs. Hanjin Transportation Co | BIT Computer vs. Automobile Pc | BIT Computer vs. Innowireless Co |
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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