Correlation Between BKIS and Associates First

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

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

Diversification Opportunities for BKIS and Associates First

0.0

Correlation Coefficient

BKIS  Associates First

Pay attention - limited upside

The 3 months correlation between BKIS and Associates is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BKIS 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 BKIS 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 BKIS 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 BKIS i.e., BKIS and Associates First go up and down completely randomly.

Pair Corralation between BKIS and Associates First

If you would invest  0.01  in Associates First Capital on October 27, 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	5.26%
Values	Daily Returns

BKIS  vs.  Associates First Capital

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.

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 latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with BKIS and Associates First

The main advantage of trading using opposite BKIS and Associates First positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BKIS 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 BKIS 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.

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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.