Correlation Between Bendigo and Advanced Braking

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

By analyzing existing cross correlation between Bendigo And Adelaide and Advanced Braking Technology, you can compare the effects of market volatilities on Bendigo and Advanced Braking 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 Bendigo with a short position of Advanced Braking. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bendigo and Advanced Braking.

Diversification Opportunities for Bendigo and Advanced Braking

0.0

Correlation Coefficient

Bendigo  Advanced Braking

Pay attention - limited upside

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

Pair Corralation between Bendigo and Advanced Braking

If you would invest  0.00  in Bendigo And Adelaide on October 4, 2024 and sell it today you would earn a total of  0.00  from holding Bendigo And Adelaide or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	5.0%
Values	Daily Returns

Bendigo And Adelaide  vs.  Advanced Braking Technology

Bendigo And Adelaide

Risk-Adjusted Performance

0 of 100

Good

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

Advanced Braking Tec

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Advanced Braking Technology are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Advanced Braking 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 Bendigo and Advanced Braking

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

The idea behind Bendigo And Adelaide and Advanced Braking Technology 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.