Correlation Between Blackhawk Growth and Bimini Capital

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

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

Diversification Opportunities for Blackhawk Growth and Bimini Capital

0.0

Correlation Coefficient

Blackhawk Growth  Bimini Capital

Pay attention - limited upside

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

Pair Corralation between Blackhawk Growth and Bimini Capital

If you would invest  102.00  in Bimini Capital Management on December 30, 2024 and sell it today you would earn a total of  33.00  from holding Bimini Capital Management or generate 32.35% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	95.38%
Values	Daily Returns

Blackhawk Growth Corp  vs.  Bimini Capital Management

Blackhawk Growth Corp

Risk-Adjusted Performance

Very Weak

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

Bimini Capital Management

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Bimini Capital Management are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of very fragile basic indicators, Bimini Capital displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Blackhawk Growth and Bimini Capital

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

The idea behind Blackhawk Growth Corp and Bimini Capital Management 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.