Correlation Between Impact Growth and Bhiraj Office

Can any of the company-specific risk be diversified away by investing in both Impact Growth and Bhiraj Office 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 Impact Growth and Bhiraj Office into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Impact Growth REIT and Bhiraj Office Leasehold, you can compare the effects of market volatilities on Impact Growth and Bhiraj Office 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 Impact Growth with a short position of Bhiraj Office. Check out your portfolio center. Please also check ongoing floating volatility patterns of Impact Growth and Bhiraj Office.

Diversification Opportunities for Impact Growth and Bhiraj Office

-0.28

Correlation Coefficient

Impact Growth  Bhiraj Office

Very good diversification

The 3 months correlation between Impact and Bhiraj is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Impact Growth REIT and Bhiraj Office Leasehold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bhiraj Office Leasehold and Impact Growth 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 Impact Growth REIT are associated (or correlated) with Bhiraj Office. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bhiraj Office Leasehold has no effect on the direction of Impact Growth i.e., Impact Growth and Bhiraj Office go up and down completely randomly.

Pair Corralation between Impact Growth and Bhiraj Office

Assuming the 90 days trading horizon Impact Growth REIT is expected to under-perform the Bhiraj Office. But the stock apears to be less risky and, when comparing its historical volatility, Impact Growth REIT is 1.05 times less risky than Bhiraj Office. The stock trades about -0.1 of its potential returns per unit of risk. The Bhiraj Office Leasehold is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  470.00  in Bhiraj Office Leasehold on September 13, 2024 and sell it today you would earn a total of  60.00  from holding Bhiraj Office Leasehold or generate 12.77% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Impact Growth REIT  vs.  Bhiraj Office Leasehold

Impact Growth REIT

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Impact Growth REIT has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Bhiraj Office Leasehold

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Bhiraj Office Leasehold are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak technical and fundamental indicators, Bhiraj Office exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Impact Growth and Bhiraj Office

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

The idea behind Impact Growth REIT and Bhiraj Office Leasehold 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.

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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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.