Correlation Between Bankers Investment and SURETRACK MON

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Can any of the company-specific risk be diversified away by investing in both Bankers Investment and SURETRACK MON 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 SURETRACK MON 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 SURETRACK MON , you can compare the effects of market volatilities on Bankers Investment and SURETRACK MON 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 SURETRACK MON. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bankers Investment and SURETRACK MON.

Diversification Opportunities for Bankers Investment and SURETRACK MON

0.61
  Correlation Coefficient

Poor diversification

The 3 months correlation between Bankers and SURETRACK is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Bankers Investment Trust and SURETRACK MON in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SURETRACK MON 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 SURETRACK MON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SURETRACK MON has no effect on the direction of Bankers Investment i.e., Bankers Investment and SURETRACK MON go up and down completely randomly.

Pair Corralation between Bankers Investment and SURETRACK MON

Assuming the 90 days trading horizon Bankers Investment is expected to generate 24.22 times less return on investment than SURETRACK MON. But when comparing it to its historical volatility, Bankers Investment Trust is 18.64 times less risky than SURETRACK MON. It trades about 0.21 of its potential returns per unit of risk. SURETRACK MON is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest  18.00  in SURETRACK MON on October 25, 2024 and sell it today you would earn a total of  87.00  from holding SURETRACK MON or generate 483.33% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Bankers Investment Trust  vs.  SURETRACK MON

 Performance 
       Timeline  
Bankers Investment Trust 

Risk-Adjusted Performance

16 of 100

 
Weak
 
Strong
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in Bankers Investment Trust are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Bankers Investment may actually be approaching a critical reversion point that can send shares even higher in February 2025.
SURETRACK MON 

Risk-Adjusted Performance

21 of 100

 
Weak
 
Strong
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in SURETRACK MON are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, SURETRACK MON exhibited solid returns over the last few months and may actually be approaching a breakup point.

Bankers Investment and SURETRACK MON Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Bankers Investment and SURETRACK MON

The main advantage of trading using opposite Bankers Investment and SURETRACK MON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bankers Investment position performs unexpectedly, SURETRACK MON 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 SURETRACK MON will offset losses from the drop in SURETRACK MON's long position.
The idea behind Bankers Investment Trust and SURETRACK MON 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.

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