Correlation Between Bank of the and Keepers Holdings
Can any of the company-specific risk be diversified away by investing in both Bank of the and Keepers Holdings 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 of the and Keepers Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank of the and Keepers Holdings, you can compare the effects of market volatilities on Bank of the and Keepers Holdings 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 of the with a short position of Keepers Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of the and Keepers Holdings.
Diversification Opportunities for Bank of the and Keepers Holdings
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bank and Keepers is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Bank of the and Keepers Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keepers Holdings and Bank of the 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 of the are associated (or correlated) with Keepers Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keepers Holdings has no effect on the direction of Bank of the i.e., Bank of the and Keepers Holdings go up and down completely randomly.
Pair Corralation between Bank of the and Keepers Holdings
Assuming the 90 days trading horizon Bank of the is expected to under-perform the Keepers Holdings. In addition to that, Bank of the is 1.2 times more volatile than Keepers Holdings. It trades about -0.04 of its total potential returns per unit of risk. Keepers Holdings is currently generating about -0.02 per unit of volatility. If you would invest 264.00 in Keepers Holdings on April 25, 2025 and sell it today you would lose (6.00) from holding Keepers Holdings or give up 2.27% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Bank of the vs. Keepers Holdings
Performance |
Timeline |
Bank of the |
Keepers Holdings |
Bank of the and Keepers Holdings Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bank of the and Keepers Holdings
The main advantage of trading using opposite Bank of the and Keepers Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of the position performs unexpectedly, Keepers Holdings 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 Keepers Holdings will offset losses from the drop in Keepers Holdings' long position.Bank of the vs. STI Education Systems | Bank of the vs. National Reinsurance | Bank of the vs. United Paragon Mining | Bank of the vs. Jollibee Foods Corp |
Keepers Holdings vs. National Reinsurance | Keepers Holdings vs. Philex Mining Corp | Keepers Holdings vs. Transpacific Broadband Group | Keepers Holdings vs. Converge Information Communications |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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