Correlation Between Beeks Trading and RBG Holdings
Can any of the company-specific risk be diversified away by investing in both Beeks Trading and RBG 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 Beeks Trading and RBG Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Beeks Trading and RBG Holdings PLC, you can compare the effects of market volatilities on Beeks Trading and RBG 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 Beeks Trading with a short position of RBG Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beeks Trading and RBG Holdings.
Diversification Opportunities for Beeks Trading and RBG Holdings
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Beeks and RBG is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Beeks Trading and RBG Holdings PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RBG Holdings PLC and Beeks Trading 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 Beeks Trading are associated (or correlated) with RBG Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RBG Holdings PLC has no effect on the direction of Beeks Trading i.e., Beeks Trading and RBG Holdings go up and down completely randomly.
Pair Corralation between Beeks Trading and RBG Holdings
Assuming the 90 days trading horizon Beeks Trading is expected to generate 4.38 times less return on investment than RBG Holdings. But when comparing it to its historical volatility, Beeks Trading is 3.67 times less risky than RBG Holdings. It trades about 0.29 of its potential returns per unit of risk. RBG Holdings PLC is currently generating about 0.35 of returns per unit of risk over similar time horizon. If you would invest 163.00 in RBG Holdings PLC on September 13, 2024 and sell it today you would earn a total of 132.00 from holding RBG Holdings PLC or generate 80.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Beeks Trading vs. RBG Holdings PLC
Performance |
| Timeline |
| Beeks Trading |
| RBG Holdings PLC |
Beeks Trading and RBG Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beeks Trading and RBG Holdings
The main advantage of trading using opposite Beeks Trading and RBG Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beeks Trading position performs unexpectedly, RBG 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 RBG Holdings will offset losses from the drop in RBG Holdings' long position.| Beeks Trading vs. Edita Food Industries | Beeks Trading vs. BW Offshore | Beeks Trading vs. Hilton Food Group | Beeks Trading vs. Supermarket Income REIT |
| RBG Holdings vs. Gaztransport et Technigaz | RBG Holdings vs. Zinc Media Group | RBG Holdings vs. TechnipFMC PLC | RBG Holdings vs. Intermediate Capital 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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