Correlation Between Centaur Bci and British Amer
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By analyzing existing cross correlation between Centaur Bci Balanced and British American Tobacco, you can compare the effects of market volatilities on Centaur Bci and British Amer 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 Centaur Bci with a short position of British Amer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Centaur Bci and British Amer.
Diversification Opportunities for Centaur Bci and British Amer
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Centaur and British is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Centaur Bci Balanced and British American Tobacco in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on British American Tobacco and Centaur Bci 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 Centaur Bci Balanced are associated (or correlated) with British Amer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of British American Tobacco has no effect on the direction of Centaur Bci i.e., Centaur Bci and British Amer go up and down completely randomly.
Pair Corralation between Centaur Bci and British Amer
Assuming the 90 days trading horizon Centaur Bci is expected to generate 1.58 times less return on investment than British Amer. But when comparing it to its historical volatility, Centaur Bci Balanced is 2.45 times less risky than British Amer. It trades about 0.1 of its potential returns per unit of risk. British American Tobacco is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 6,531,336 in British American Tobacco on September 2, 2024 and sell it today you would earn a total of 299,664 from holding British American Tobacco or generate 4.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 96.92% |
| Values | Daily Returns |
Centaur Bci Balanced vs. British American Tobacco
Performance |
| Timeline |
| Centaur Bci Balanced |
| British American Tobacco |
Centaur Bci and British Amer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Centaur Bci and British Amer
The main advantage of trading using opposite Centaur Bci and British Amer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Centaur Bci position performs unexpectedly, British Amer 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 British Amer will offset losses from the drop in British Amer's long position.| Centaur Bci vs. 4d Bci Moderate | Centaur Bci vs. Coronation Global Optimum | Centaur Bci vs. Absa Multi managed Absolute | Centaur Bci vs. Coronation Balanced Plus |
| British Amer vs. Centaur Bci Balanced | British Amer vs. Sabvest Capital | British Amer vs. AfricaRhodium ETF | British Amer vs. Indexco Limited |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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