Correlation Between Butterfly Network and Grand City
Can any of the company-specific risk be diversified away by investing in both Butterfly Network and Grand City 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 Butterfly Network and Grand City into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Butterfly Network and Grand City Properties, you can compare the effects of market volatilities on Butterfly Network and Grand City 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 Butterfly Network with a short position of Grand City. Check out your portfolio center. Please also check ongoing floating volatility patterns of Butterfly Network and Grand City.
Diversification Opportunities for Butterfly Network and Grand City
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Butterfly and Grand is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Butterfly Network and Grand City Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grand City Properties and Butterfly Network 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 Butterfly Network are associated (or correlated) with Grand City. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grand City Properties has no effect on the direction of Butterfly Network i.e., Butterfly Network and Grand City go up and down completely randomly.
Pair Corralation between Butterfly Network and Grand City
Given the investment horizon of 90 days Butterfly Network is expected to generate 3.68 times more return on investment than Grand City. However, Butterfly Network is 3.68 times more volatile than Grand City Properties. It trades about 0.19 of its potential returns per unit of risk. Grand City Properties is currently generating about 0.0 per unit of risk. If you would invest 93.00 in Butterfly Network on September 19, 2024 and sell it today you would earn a total of 247.00 from holding Butterfly Network or generate 265.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Butterfly Network vs. Grand City Properties
Performance |
| Timeline |
| Butterfly Network |
| Grand City Properties |
Butterfly Network and Grand City Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Butterfly Network and Grand City
The main advantage of trading using opposite Butterfly Network and Grand City positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Butterfly Network position performs unexpectedly, Grand City 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 Grand City will offset losses from the drop in Grand City's long position.| Butterfly Network vs. Avita Medical | Butterfly Network vs. Inogen Inc | Butterfly Network vs. Apyx Medical |
| Grand City vs. J W Mays | Grand City vs. Frp Holdings Ord | Grand City vs. Maui Land Pineapple | Grand City vs. Fathom Holdings |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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