Correlation Between Bucharest BET-NG and PSI 20
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By analyzing existing cross correlation between Bucharest BET-NG and PSI 20 Stock, you can compare the effects of market volatilities on Bucharest BET-NG and PSI 20 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 Bucharest BET-NG with a short position of PSI 20. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bucharest BET-NG and PSI 20.
Diversification Opportunities for Bucharest BET-NG and PSI 20
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Bucharest and PSI is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Bucharest BET-NG and PSI 20 Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PSI 20 Stock and Bucharest BET-NG 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 Bucharest BET-NG are associated (or correlated) with PSI 20. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PSI 20 Stock has no effect on the direction of Bucharest BET-NG i.e., Bucharest BET-NG and PSI 20 go up and down completely randomly.
Pair Corralation between Bucharest BET-NG and PSI 20
Assuming the 90 days trading horizon Bucharest BET-NG is expected to under-perform the PSI 20. But the index apears to be less risky and, when comparing its historical volatility, Bucharest BET-NG is 2.88 times less risky than PSI 20. The index trades about -0.14 of its potential returns per unit of risk. The PSI 20 Stock is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 630,721 in PSI 20 Stock on January 30, 2024 and sell it today you would earn a total of 37,341 from holding PSI 20 Stock or generate 5.92% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 95.24% |
Values | Daily Returns |
Bucharest BET-NG vs. PSI 20 Stock
Performance |
Timeline |
Bucharest BET-NG and PSI 20 Volatility Contrast
Predicted Return Density |
Returns |
Bucharest BET-NG
Pair trading matchups for Bucharest BET-NG
Pair Trading with Bucharest BET-NG and PSI 20
The main advantage of trading using opposite Bucharest BET-NG and PSI 20 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bucharest BET-NG position performs unexpectedly, PSI 20 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 PSI 20 will offset losses from the drop in PSI 20's long position.Bucharest BET-NG vs. AROBS TRANSILVANIA SOFTWARE | Bucharest BET-NG vs. TRANSILVANIA LEASING SI | Bucharest BET-NG vs. IM Vinaria Purcari | Bucharest BET-NG vs. TRANSILVANIA INVESTMENTS ALLIANCE |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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