Correlation Between VIRGIN WINES and British American
Can any of the company-specific risk be diversified away by investing in both VIRGIN WINES 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 VIRGIN WINES and British American into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VIRGIN WINES UK and British American Tobacco, you can compare the effects of market volatilities on VIRGIN WINES 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 VIRGIN WINES with a short position of British American. Check out your portfolio center. Please also check ongoing floating volatility patterns of VIRGIN WINES and British American.
Diversification Opportunities for VIRGIN WINES and British American
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between VIRGIN and British is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding VIRGIN WINES UK 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 VIRGIN WINES 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 VIRGIN WINES UK 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 VIRGIN WINES i.e., VIRGIN WINES and British American go up and down completely randomly.
Pair Corralation between VIRGIN WINES and British American
If you would invest 3,211 in British American Tobacco on August 26, 2024 and sell it today you would earn a total of 368.00 from holding British American Tobacco or generate 11.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
VIRGIN WINES UK vs. British American Tobacco
Performance |
| Timeline |
| VIRGIN WINES UK |
| British American Tobacco |
VIRGIN WINES and British American Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VIRGIN WINES and British American
The main advantage of trading using opposite VIRGIN WINES and British American positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VIRGIN WINES 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.| VIRGIN WINES vs. Altia Oyj | VIRGIN WINES vs. LANSON BCC INH EO | VIRGIN WINES vs. Superior Plus Corp | VIRGIN WINES vs. NMI Holdings |
| British American vs. VIRGIN WINES UK | British American vs. National Storage Affiliates | British American vs. Xenia Hotels Resorts | British American vs. Park Hotels Resorts |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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