Correlation Between Coor Service and British American
Can any of the company-specific risk be diversified away by investing in both Coor Service and British American 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 Coor Service and British American into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coor Service Management and British American Tobacco, you can compare the effects of market volatilities on Coor Service and British American 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 Coor Service with a short position of British American. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coor Service and British American.
Diversification Opportunities for Coor Service and British American
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Coor and British is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Coor Service Management 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 Coor Service 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 Coor Service Management are associated (or correlated) with British American. 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 Coor Service i.e., Coor Service and British American go up and down completely randomly.
Pair Corralation between Coor Service and British American
Assuming the 90 days trading horizon Coor Service Management is expected to under-perform the British American. In addition to that, Coor Service is 1.62 times more volatile than British American Tobacco. It trades about -0.05 of its total potential returns per unit of risk. British American Tobacco is currently generating about 0.04 per unit of volatility. If you would invest 3,123 in British American Tobacco on November 27, 2024 and sell it today you would earn a total of 694.00 from holding British American Tobacco or generate 22.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.59% |
| Values | Daily Returns |
Coor Service Management vs. British American Tobacco
Performance |
| Timeline |
| Coor Service Management |
| British American Tobacco |
Coor Service and British American Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coor Service and British American
The main advantage of trading using opposite Coor Service and British American positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coor Service position performs unexpectedly, British American 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 American will offset losses from the drop in British American's long position.| Coor Service vs. Universal Health Services | Coor Service vs. Naked Wines plc | Coor Service vs. Air Products Chemicals | Coor Service vs. Cardinal Health |
| British American vs. UNIQA Insurance Group | British American vs. Austevoll Seafood ASA | British American vs. Berner Kantonalbank AG | British American vs. MoneysupermarketCom Group PLC |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Stocks Directory Find actively traded stocks across global markets |