Correlation Between Blrc Sgy and Simt Multi

Can any of the company-specific risk be diversified away by investing in both Blrc Sgy and Simt Multi 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 Blrc Sgy and Simt Multi into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Blrc Sgy Mnp and Simt Multi Strategy Alternative, you can compare the effects of market volatilities on Blrc Sgy and Simt Multi 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 Blrc Sgy with a short position of Simt Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blrc Sgy and Simt Multi.

Diversification Opportunities for Blrc Sgy and Simt Multi

0.06

Correlation Coefficient

Blrc Sgy  Simt Multi

Significant diversification

The 3 months correlation between Blrc and Simt is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Blrc Sgy Mnp and Simt Multi Strategy Alternativ in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simt Multi Strategy and Blrc Sgy 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 Blrc Sgy Mnp are associated (or correlated) with Simt Multi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simt Multi Strategy has no effect on the direction of Blrc Sgy i.e., Blrc Sgy and Simt Multi go up and down completely randomly.

Pair Corralation between Blrc Sgy and Simt Multi

Assuming the 90 days horizon Blrc Sgy Mnp is expected to generate 0.8 times more return on investment than Simt Multi. However, Blrc Sgy Mnp is 1.24 times less risky than Simt Multi. It trades about 0.35 of its potential returns per unit of risk. Simt Multi Strategy Alternative is currently generating about 0.25 per unit of risk. If you would invest  1,056  in Blrc Sgy Mnp on September 13, 2024 and sell it today you would earn a total of  14.00  from holding Blrc Sgy Mnp or generate 1.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	95.45%
Values	Daily Returns

Blrc Sgy Mnp  vs.  Simt Multi Strategy Alternativ

Blrc Sgy Mnp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Blrc Sgy Mnp has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Blrc Sgy is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Simt Multi Strategy

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Simt Multi Strategy Alternative are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Simt Multi is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Blrc Sgy and Simt Multi

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

The idea behind Blrc Sgy Mnp and Simt Multi Strategy Alternative 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.