Correlation Between Roku and BankInvest Optima
Can any of the company-specific risk be diversified away by investing in both Roku and BankInvest Optima 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 Roku and BankInvest Optima into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Roku Inc and BankInvest Optima 75, you can compare the effects of market volatilities on Roku and BankInvest Optima 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 Roku with a short position of BankInvest Optima. Check out your portfolio center. Please also check ongoing floating volatility patterns of Roku and BankInvest Optima.
Diversification Opportunities for Roku and BankInvest Optima
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Roku and BankInvest is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Roku Inc and BankInvest Optima 75 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BankInvest Optima and Roku 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 Roku Inc are associated (or correlated) with BankInvest Optima. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BankInvest Optima has no effect on the direction of Roku i.e., Roku and BankInvest Optima go up and down completely randomly.
Pair Corralation between Roku and BankInvest Optima
Given the investment horizon of 90 days Roku Inc is expected to under-perform the BankInvest Optima. In addition to that, Roku is 3.42 times more volatile than BankInvest Optima 75. It trades about -0.31 of its total potential returns per unit of risk. BankInvest Optima 75 is currently generating about -0.12 per unit of volatility. If you would invest 11,370 in BankInvest Optima 75 on January 20, 2024 and sell it today you would lose (140.00) from holding BankInvest Optima 75 or give up 1.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 86.36% |
| Values | Daily Returns |
Roku Inc vs. BankInvest Optima 75
Performance |
| Timeline |
| Roku Inc |
| BankInvest Optima |
Roku and BankInvest Optima Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Roku and BankInvest Optima
The main advantage of trading using opposite Roku and BankInvest Optima positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Roku position performs unexpectedly, BankInvest Optima 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 BankInvest Optima will offset losses from the drop in BankInvest Optima's long position.The idea behind Roku Inc and BankInvest Optima 75 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.| BankInvest Optima vs. Novo Nordisk AS | BankInvest Optima vs. Nordea Bank Abp | BankInvest Optima vs. DSV Panalpina AS | BankInvest Optima vs. AP Mller |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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