Correlation Between B Investments and Inter Cairo

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

By analyzing existing cross correlation between B Investments Holding and Inter Cairo For Aluminum, you can compare the effects of market volatilities on B Investments and Inter Cairo 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 B Investments with a short position of Inter Cairo. Check out your portfolio center. Please also check ongoing floating volatility patterns of B Investments and Inter Cairo.

Diversification Opportunities for B Investments and Inter Cairo

0.0

Correlation Coefficient

B Investments  Inter Cairo

Pay attention - limited upside

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

Pair Corralation between B Investments and Inter Cairo

If you would invest  2,260  in B Investments Holding on September 16, 2024 and sell it today you would earn a total of  261.00  from holding B Investments Holding or generate 11.55% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

B Investments Holding  vs.  Inter Cairo For Aluminum

B Investments Holding

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in B Investments Holding are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile technical and fundamental indicators, B Investments reported solid returns over the last few months and may actually be approaching a breakup point.

Inter Cairo For

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Inter Cairo For Aluminum has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, Inter Cairo is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with B Investments and Inter Cairo

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

The idea behind B Investments Holding and Inter Cairo For Aluminum 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.