Correlation Between Bimini Capital and Winmill Co

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

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

Diversification Opportunities for Bimini Capital and Winmill Co

0.0

Correlation Coefficient

Bimini Capital  Winmill Co

Pay attention - limited upside

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

Pair Corralation between Bimini Capital and Winmill Co

If you would invest  102.00  in Bimini Capital Management on December 29, 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	0.0%
Values	Daily Returns

Bimini Capital Management  vs.  Winmill Co Incorporated

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.

Winmill Co

Risk-Adjusted Performance

Very Weak

Over the last 90 days Winmill Co Incorporated has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong essential indicators, Winmill Co is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Bimini Capital and Winmill Co

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

The idea behind Bimini Capital Management and Winmill Co Incorporated 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.