Correlation Between Advantage Solutions and Banyan Gold
Can any of the company-specific risk be diversified away by investing in both Advantage Solutions and Banyan Gold 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 Advantage Solutions and Banyan Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Advantage Solutions and Banyan Gold Corp, you can compare the effects of market volatilities on Advantage Solutions and Banyan Gold 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 Advantage Solutions with a short position of Banyan Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advantage Solutions and Banyan Gold.
Diversification Opportunities for Advantage Solutions and Banyan Gold
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Advantage and Banyan is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Advantage Solutions and Banyan Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banyan Gold Corp and Advantage Solutions 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 Advantage Solutions are associated (or correlated) with Banyan Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banyan Gold Corp has no effect on the direction of Advantage Solutions i.e., Advantage Solutions and Banyan Gold go up and down completely randomly.
Pair Corralation between Advantage Solutions and Banyan Gold
Assuming the 90 days horizon Advantage Solutions is expected to generate 3.68 times more return on investment than Banyan Gold. However, Advantage Solutions is 3.68 times more volatile than Banyan Gold Corp. It trades about 0.08 of its potential returns per unit of risk. Banyan Gold Corp is currently generating about -0.02 per unit of risk. If you would invest 4.00 in Advantage Solutions on September 3, 2024 and sell it today you would lose (1.08) from holding Advantage Solutions or give up 27.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 92.8% |
| Values | Daily Returns |
Advantage Solutions vs. Banyan Gold Corp
Performance |
| Timeline |
| Advantage Solutions |
| Banyan Gold Corp |
Advantage Solutions and Banyan Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advantage Solutions and Banyan Gold
The main advantage of trading using opposite Advantage Solutions and Banyan Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advantage Solutions position performs unexpectedly, Banyan Gold 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 Banyan Gold will offset losses from the drop in Banyan Gold's long position.| Advantage Solutions vs. CannBioRx Life Sciences | Advantage Solutions vs. GCM Grosvenor | Advantage Solutions vs. CuriosityStream | Advantage Solutions vs. HUMANA INC |
| Banyan Gold vs. Advantage Solutions | Banyan Gold vs. Atlas Corp | Banyan Gold vs. PureCycle Technologies | Banyan Gold vs. WM Technology |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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