Correlation Between Bank Central and Global Acquisitions

Can any of the company-specific risk be diversified away by investing in both Bank Central and Global Acquisitions 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 Global Acquisitions 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 Global Acquisitions, you can compare the effects of market volatilities on Bank Central and Global Acquisitions 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 Global Acquisitions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Central and Global Acquisitions.

Diversification Opportunities for Bank Central and Global Acquisitions

0.76

Correlation Coefficient

Bank Central  Global Acquisitions

Poor diversification

The 3 months correlation between Bank and Global is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Bank Central Asia and Global Acquisitions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Acquisitions 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 Global Acquisitions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Acquisitions has no effect on the direction of Bank Central i.e., Bank Central and Global Acquisitions go up and down completely randomly.

Pair Corralation between Bank Central and Global Acquisitions

Assuming the 90 days horizon Bank Central Asia is expected to generate 0.49 times more return on investment than Global Acquisitions. However, Bank Central Asia is 2.03 times less risky than Global Acquisitions. It trades about 0.0 of its potential returns per unit of risk. Global Acquisitions is currently generating about -0.1 per unit of risk. If you would invest  1,283  in Bank Central Asia on July 26, 2025 and sell it today you would lose (25.00) from holding Bank Central Asia or give up 1.95% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Bank Central Asia  vs.  Global Acquisitions

Bank Central Asia

Risk-Adjusted Performance

Weakest

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

Global Acquisitions

Risk-Adjusted Performance

Weakest

Over the last 90 days Global Acquisitions has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in November 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Bank Central and Global Acquisitions

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

The idea behind Bank Central Asia and Global Acquisitions 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..