Correlation Between Balkan Mining and Saferoads Holdings

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

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

Diversification Opportunities for Balkan Mining and Saferoads Holdings

0.0

Correlation Coefficient

Balkan Mining  Saferoads Holdings

Pay attention - limited upside

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

Pair Corralation between Balkan Mining and Saferoads Holdings

If you would invest  4.10  in Saferoads Holdings on October 8, 2024 and sell it today you would earn a total of  0.00  from holding Saferoads Holdings or generate 0.0% return on investment over 90 days.

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

Balkan Mining and  vs.  Saferoads Holdings

Balkan Mining

Risk-Adjusted Performance

0 of 100

Very Weak

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

Saferoads Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Saferoads Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical indicators, Saferoads Holdings 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 Balkan Mining and Saferoads Holdings

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

The idea behind Balkan Mining and and Saferoads Holdings 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.