Correlation Between British American and FGV Holdings
Can any of the company-specific risk be diversified away by investing in both British American and FGV Holdings 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 British American and FGV Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between British American Tobacco and FGV Holdings Bhd, you can compare the effects of market volatilities on British American and FGV Holdings 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 British American with a short position of FGV Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of British American and FGV Holdings.
Diversification Opportunities for British American and FGV Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between British and FGV is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding British American Tobacco and FGV Holdings Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FGV Holdings Bhd and British American 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 British American Tobacco are associated (or correlated) with FGV Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FGV Holdings Bhd has no effect on the direction of British American i.e., British American and FGV Holdings go up and down completely randomly.
Pair Corralation between British American and FGV Holdings
If you would invest (100.00) in FGV Holdings Bhd on September 4, 2024 and sell it today you would earn a total of 100.00 from holding FGV Holdings Bhd or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
British American Tobacco vs. FGV Holdings Bhd
Performance |
| Timeline |
| British American Tobacco |
| FGV Holdings Bhd |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
British American and FGV Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with British American and FGV Holdings
The main advantage of trading using opposite British American and FGV Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if British American position performs unexpectedly, FGV Holdings 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 FGV Holdings will offset losses from the drop in FGV Holdings' long position.| British American vs. Awanbiru Technology Bhd | British American vs. Sungei Bagan Rubber | British American vs. Daya Materials Bhd | British American vs. CPE Technology Berhad |
| FGV Holdings vs. Binasat Communications Bhd | FGV Holdings vs. DC HEALTHCARE HOLDINGS | FGV Holdings vs. Carlsberg Brewery Malaysia | FGV Holdings vs. YX Precious Metals |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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