Correlation Between Bankinvest USA and Maj Invest

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

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

Diversification Opportunities for Bankinvest USA and Maj Invest

0.0

Correlation Coefficient

Bankinvest USA  Maj Invest

Pay attention - limited upside

The 3 months correlation between Bankinvest and Maj is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bankinvest USA and Maj Invest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maj Invest and Bankinvest USA 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 Bankinvest USA are associated (or correlated) with Maj Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maj Invest has no effect on the direction of Bankinvest USA i.e., Bankinvest USA and Maj Invest go up and down completely randomly.

Pair Corralation between Bankinvest USA and Maj Invest

If you would invest (100.00) in Bankinvest USA on December 29, 2024 and sell it today you would earn a total of  100.00  from holding Bankinvest USA or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Bankinvest USA  vs.  Maj Invest

Bankinvest USA

Risk-Adjusted Performance

Very Weak

Over the last 90 days Bankinvest USA has generated negative risk-adjusted returns adding no value to fund investors. Despite somewhat strong basic indicators, Bankinvest USA is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Maj Invest

Risk-Adjusted Performance

Very Weak

Over the last 90 days Maj Invest has generated negative risk-adjusted returns adding no value to fund investors. Despite somewhat strong forward-looking indicators, Maj Invest is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Bankinvest USA and Maj Invest

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

The idea behind Bankinvest USA and Maj Invest 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.

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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.