Correlation Between Bank Central and Home Plate
Can any of the company-specific risk be diversified away by investing in both Bank Central and Home Plate 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 Bank Central and Home Plate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Central Asia and Home Plate Acquisition, you can compare the effects of market volatilities on Bank Central and Home Plate 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 Bank Central with a short position of Home Plate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Central and Home Plate.
Diversification Opportunities for Bank Central and Home Plate
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and Home is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bank Central Asia and Home Plate Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Home Plate Acquisition and Bank Central 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 Bank Central Asia are associated (or correlated) with Home Plate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Home Plate Acquisition has no effect on the direction of Bank Central i.e., Bank Central and Home Plate go up and down completely randomly.
Pair Corralation between Bank Central and Home Plate
If you would invest (100.00) in Home Plate Acquisition on December 3, 2024 and sell it today you would earn a total of 100.00 from holding Home Plate Acquisition or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Bank Central Asia vs. Home Plate Acquisition
Performance |
Timeline |
Bank Central Asia |
Home Plate Acquisition |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Bank Central and Home Plate Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bank Central and Home Plate
The main advantage of trading using opposite Bank Central and Home Plate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Central position performs unexpectedly, Home Plate 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 Home Plate will offset losses from the drop in Home Plate's long position.Bank Central vs. HDFC Bank Limited | Bank Central vs. China Merchants Bank | Bank Central vs. China Merchants Bank | Bank Central vs. Fifth Third Bancorp |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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