Correlation Between LANDSEA GREEN and British American
Can any of the company-specific risk be diversified away by investing in both LANDSEA GREEN 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 LANDSEA GREEN and British American into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LANDSEA GREEN MANAGEMENT and British American Tobacco, you can compare the effects of market volatilities on LANDSEA GREEN 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 LANDSEA GREEN with a short position of British American. Check out your portfolio center. Please also check ongoing floating volatility patterns of LANDSEA GREEN and British American.
Diversification Opportunities for LANDSEA GREEN and British American
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between LANDSEA and British is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding LANDSEA GREEN 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 LANDSEA GREEN 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 LANDSEA GREEN 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 LANDSEA GREEN i.e., LANDSEA GREEN and British American go up and down completely randomly.
Pair Corralation between LANDSEA GREEN and British American
If you would invest 3,480 in British American Tobacco on October 25, 2024 and sell it today you would earn a total of 40.00 from holding British American Tobacco or generate 1.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
LANDSEA GREEN MANAGEMENT vs. British American Tobacco
Performance |
| Timeline |
| LANDSEA GREEN MANAGEMENT |
| British American Tobacco |
LANDSEA GREEN and British American Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LANDSEA GREEN and British American
The main advantage of trading using opposite LANDSEA GREEN and British American positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LANDSEA GREEN 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.| LANDSEA GREEN vs. China Resources Land | LANDSEA GREEN vs. CTP NV EO | LANDSEA GREEN vs. Superior Plus Corp | LANDSEA GREEN vs. Origin Agritech |
| British American vs. Tsingtao Brewery | British American vs. Tokyu Construction Co | British American vs. North American Construction | British American vs. FARM 51 GROUP |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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