Correlation Between Centaur Bci and Afine Investments

Can any of the company-specific risk be diversified away by investing in both Centaur Bci and Afine Investments 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 Centaur Bci and Afine Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Centaur Bci Balanced and Afine Investments, you can compare the effects of market volatilities on Centaur Bci and Afine Investments 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 Centaur Bci with a short position of Afine Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Centaur Bci and Afine Investments.

Diversification Opportunities for Centaur Bci and Afine Investments

-0.51

Correlation Coefficient

Centaur Bci  Afine Investments

Excellent diversification

The 3 months correlation between Centaur and Afine is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Centaur Bci Balanced and Afine Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Afine Investments and Centaur Bci 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 Centaur Bci Balanced are associated (or correlated) with Afine Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Afine Investments has no effect on the direction of Centaur Bci i.e., Centaur Bci and Afine Investments go up and down completely randomly.

Pair Corralation between Centaur Bci and Afine Investments

Assuming the 90 days trading horizon Centaur Bci Balanced is expected to generate 0.23 times more return on investment than Afine Investments. However, Centaur Bci Balanced is 4.38 times less risky than Afine Investments. It trades about 0.19 of its potential returns per unit of risk. Afine Investments is currently generating about 0.03 per unit of risk. If you would invest  230.00  in Centaur Bci Balanced on September 4, 2024 and sell it today you would earn a total of  12.00  from holding Centaur Bci Balanced or generate 5.22% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	96.88%
Values	Daily Returns

Centaur Bci Balanced  vs.  Afine Investments

Centaur Bci Balanced

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Centaur Bci Balanced are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Centaur Bci is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Afine Investments

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Afine Investments are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical and fundamental indicators, Afine Investments is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Centaur Bci and Afine Investments

The main advantage of trading using opposite Centaur Bci and Afine Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Centaur Bci position performs unexpectedly, Afine Investments 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 Afine Investments will offset losses from the drop in Afine Investments' long position.

The idea behind Centaur Bci Balanced and Afine Investments pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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.