Correlation Between Banyan Tree and Nagacorp
Can any of the company-specific risk be diversified away by investing in both Banyan Tree and Nagacorp 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 Banyan Tree and Nagacorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Banyan Tree Holdings and Nagacorp, you can compare the effects of market volatilities on Banyan Tree and Nagacorp 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 Banyan Tree with a short position of Nagacorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banyan Tree and Nagacorp.
Diversification Opportunities for Banyan Tree and Nagacorp
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Banyan and Nagacorp is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Banyan Tree Holdings and Nagacorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nagacorp and Banyan Tree 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 Banyan Tree Holdings are associated (or correlated) with Nagacorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nagacorp has no effect on the direction of Banyan Tree i.e., Banyan Tree and Nagacorp go up and down completely randomly.
Pair Corralation between Banyan Tree and Nagacorp
If you would invest 35.00 in Nagacorp on December 3, 2024 and sell it today you would earn a total of 6.00 from holding Nagacorp or generate 17.14% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 70.31% |
Values | Daily Returns |
Banyan Tree Holdings vs. Nagacorp
Performance |
Timeline |
Banyan Tree Holdings |
Nagacorp |
Banyan Tree and Nagacorp Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Banyan Tree and Nagacorp
The main advantage of trading using opposite Banyan Tree and Nagacorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banyan Tree position performs unexpectedly, Nagacorp 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 Nagacorp will offset losses from the drop in Nagacorp's long position.Banyan Tree vs. Nagacorp | Banyan Tree vs. Wynn Macau | Banyan Tree vs. MGM China Holdings | Banyan Tree vs. Table Trac |
Nagacorp vs. Banyan Tree Holdings | Nagacorp vs. Wynn Macau | Nagacorp vs. MGM China Holdings | Nagacorp vs. Table Trac |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
Global Correlations Find global opportunities by holding instruments from different markets |