Correlation Between Advanced Braking and Maggie Beer
Can any of the company-specific risk be diversified away by investing in both Advanced Braking and Maggie Beer 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 Advanced Braking and Maggie Beer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Advanced Braking Technology and Maggie Beer Holdings, you can compare the effects of market volatilities on Advanced Braking and Maggie Beer 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 Advanced Braking with a short position of Maggie Beer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advanced Braking and Maggie Beer.
Diversification Opportunities for Advanced Braking and Maggie Beer
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Advanced and Maggie is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Advanced Braking Technology and Maggie Beer Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maggie Beer Holdings and Advanced Braking 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 Advanced Braking Technology are associated (or correlated) with Maggie Beer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maggie Beer Holdings has no effect on the direction of Advanced Braking i.e., Advanced Braking and Maggie Beer go up and down completely randomly.
Pair Corralation between Advanced Braking and Maggie Beer
Assuming the 90 days trading horizon Advanced Braking Technology is expected to generate 0.56 times more return on investment than Maggie Beer. However, Advanced Braking Technology is 1.8 times less risky than Maggie Beer. It trades about 0.08 of its potential returns per unit of risk. Maggie Beer Holdings is currently generating about -0.01 per unit of risk. If you would invest 5.20 in Advanced Braking Technology on October 25, 2024 and sell it today you would earn a total of 3.10 from holding Advanced Braking Technology or generate 59.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advanced Braking Technology vs. Maggie Beer Holdings
Performance |
| Timeline |
| Advanced Braking Tec |
| Maggie Beer Holdings |
Advanced Braking and Maggie Beer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advanced Braking and Maggie Beer
The main advantage of trading using opposite Advanced Braking and Maggie Beer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advanced Braking position performs unexpectedly, Maggie Beer 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 Maggie Beer will offset losses from the drop in Maggie Beer's long position.| Advanced Braking vs. Maggie Beer Holdings | Advanced Braking vs. Queste Communications | Advanced Braking vs. TPG Telecom | Advanced Braking vs. Perpetual Credit Income |
| Maggie Beer vs. Steamships Trading | Maggie Beer vs. Truscott Mining Corp | Maggie Beer vs. Diversified United Investment | Maggie Beer vs. Clime Investment Management |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |