Correlation Between Bankers Investment and Centaur Media
Can any of the company-specific risk be diversified away by investing in both Bankers Investment and Centaur Media 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 Centaur Media 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 Centaur Media, you can compare the effects of market volatilities on Bankers Investment and Centaur Media 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 Centaur Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bankers Investment and Centaur Media.
Diversification Opportunities for Bankers Investment and Centaur Media
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bankers and Centaur is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Bankers Investment Trust and Centaur Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Centaur Media 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 Centaur Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Centaur Media has no effect on the direction of Bankers Investment i.e., Bankers Investment and Centaur Media go up and down completely randomly.
Pair Corralation between Bankers Investment and Centaur Media
Assuming the 90 days trading horizon Bankers Investment Trust is expected to generate 0.22 times more return on investment than Centaur Media. However, Bankers Investment Trust is 4.56 times less risky than Centaur Media. It trades about 0.16 of its potential returns per unit of risk. Centaur Media is currently generating about -0.15 per unit of risk. If you would invest 10,868 in Bankers Investment Trust on September 12, 2024 and sell it today you would earn a total of 712.00 from holding Bankers Investment Trust or generate 6.55% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Bankers Investment Trust vs. Centaur Media
Performance |
Timeline |
Bankers Investment Trust |
Centaur Media |
Bankers Investment and Centaur Media Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bankers Investment and Centaur Media
The main advantage of trading using opposite Bankers Investment and Centaur Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bankers Investment position performs unexpectedly, Centaur Media 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 Centaur Media will offset losses from the drop in Centaur Media's long position.Bankers Investment vs. Liberty Media Corp | Bankers Investment vs. Panther Metals PLC | Bankers Investment vs. Centaur Media | Bankers Investment vs. GoldMining |
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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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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