Correlation Between AirBoss Of and BKIS

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

By analyzing existing cross correlation between AirBoss of America and BKIS, you can compare the effects of market volatilities on AirBoss Of and BKIS 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 AirBoss Of with a short position of BKIS. Check out your portfolio center. Please also check ongoing floating volatility patterns of AirBoss Of and BKIS.

Diversification Opportunities for AirBoss Of and BKIS

-0.16

Correlation Coefficient

AirBoss Of  BKIS

Good diversification

The 3 months correlation between AirBoss and BKIS is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding AirBoss of America and BKIS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BKIS and AirBoss Of 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 AirBoss of America are associated (or correlated) with BKIS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BKIS has no effect on the direction of AirBoss Of i.e., AirBoss Of and BKIS go up and down completely randomly.

Pair Corralation between AirBoss Of and BKIS

Assuming the 90 days horizon AirBoss of America is expected to under-perform the BKIS. In addition to that, AirBoss Of is 5.55 times more volatile than BKIS. It trades about -0.01 of its total potential returns per unit of risk. BKIS is currently generating about 0.04 per unit of volatility. If you would invest  4,349  in BKIS on October 12, 2024 and sell it today you would earn a total of  153.00  from holding BKIS or generate 3.52% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	28.54%
Values	Daily Returns

AirBoss of America  vs.  BKIS

AirBoss of America

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days AirBoss of America has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

BKIS

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days BKIS has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable forward indicators, BKIS is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with AirBoss Of and BKIS

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

The idea behind AirBoss of America and BKIS 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.