Correlation Between Bank Central and Phoenix Biotech
Can any of the company-specific risk be diversified away by investing in both Bank Central and Phoenix Biotech 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 Phoenix Biotech 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 Phoenix Biotech Acquisition, you can compare the effects of market volatilities on Bank Central and Phoenix Biotech 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 Phoenix Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Central and Phoenix Biotech.
Diversification Opportunities for Bank Central and Phoenix Biotech
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and Phoenix is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bank Central Asia and Phoenix Biotech Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phoenix Biotech Acqu 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 Phoenix Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phoenix Biotech Acqu has no effect on the direction of Bank Central i.e., Bank Central and Phoenix Biotech go up and down completely randomly.
Pair Corralation between Bank Central and Phoenix Biotech
If you would invest (100.00) in Phoenix Biotech Acquisition on December 5, 2024 and sell it today you would earn a total of 100.00 from holding Phoenix Biotech 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. Phoenix Biotech Acquisition
Performance |
Timeline |
Bank Central Asia |
Phoenix Biotech Acqu |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Bank Central and Phoenix Biotech Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bank Central and Phoenix Biotech
The main advantage of trading using opposite Bank Central and Phoenix Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Central position performs unexpectedly, Phoenix Biotech 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 Phoenix Biotech will offset losses from the drop in Phoenix Biotech's long position.Bank Central vs. Nedbank Group | Bank Central vs. Standard Bank Group | Bank Central vs. Kasikornbank Public Co | Bank Central vs. KBC Groep NV |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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