Correlation Between BKES and Associates First

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

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

Diversification Opportunities for BKES and Associates First

0.0

Correlation Coefficient

BKES  Associates First

Pay attention - limited upside

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

Pair Corralation between BKES and Associates First

Given the investment horizon of 90 days BKES is expected to under-perform the Associates First. But the etf apears to be less risky and, when comparing its historical volatility, BKES is 58.55 times less risky than Associates First. The etf trades about -0.02 of its potential returns per unit of risk. The Associates First Capital is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  0.01  in Associates First Capital on October 12, 2024 and sell it today you would earn a total of  0.00  from holding Associates First Capital or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	25.66%
Values	Daily Returns

BKES  vs.  Associates First Capital

BKES

Risk-Adjusted Performance

0 of 100

Very Weak

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

Associates First Capital

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Associates First Capital has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong technical and fundamental indicators, Associates First is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with BKES and Associates First

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

The idea behind BKES and Associates First Capital 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.