Correlation Between Bankers Investment and Ross Stores
Can any of the company-specific risk be diversified away by investing in both Bankers Investment and Ross Stores 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 Bankers Investment and Ross Stores into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bankers Investment Trust and Ross Stores, you can compare the effects of market volatilities on Bankers Investment and Ross Stores 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 Bankers Investment with a short position of Ross Stores. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bankers Investment and Ross Stores.
Diversification Opportunities for Bankers Investment and Ross Stores
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bankers and Ross is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Bankers Investment Trust and Ross Stores in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ross Stores and Bankers Investment 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 Bankers Investment Trust are associated (or correlated) with Ross Stores. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ross Stores has no effect on the direction of Bankers Investment i.e., Bankers Investment and Ross Stores go up and down completely randomly.
Pair Corralation between Bankers Investment and Ross Stores
Assuming the 90 days trading horizon Bankers Investment Trust is expected to generate 0.41 times more return on investment than Ross Stores. However, Bankers Investment Trust is 2.44 times less risky than Ross Stores. It trades about 0.16 of its potential returns per unit of risk. Ross Stores is currently generating about 0.0 per unit of risk. If you would invest 10,928 in Bankers Investment Trust on September 18, 2024 and sell it today you would earn a total of 652.00 from holding Bankers Investment Trust or generate 5.97% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Bankers Investment Trust vs. Ross Stores
Performance |
Timeline |
Bankers Investment Trust |
Ross Stores |
Bankers Investment and Ross Stores Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bankers Investment and Ross Stores
The main advantage of trading using opposite Bankers Investment and Ross Stores positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bankers Investment position performs unexpectedly, Ross Stores 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 Ross Stores will offset losses from the drop in Ross Stores' long position.Bankers Investment vs. Catalyst Media Group | Bankers Investment vs. CATLIN GROUP | Bankers Investment vs. Tamburi Investment Partners | Bankers Investment vs. Magnora ASA |
Ross Stores vs. European Metals Holdings | Ross Stores vs. DFS Furniture PLC | Ross Stores vs. Bankers Investment Trust | Ross Stores vs. Power Metal Resources |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
Commodity Directory Find actively traded commodities issued by global exchanges | |
Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |