Correlation Between BT Group and Celebrus Technologies
Can any of the company-specific risk be diversified away by investing in both BT Group and Celebrus Technologies 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 BT Group and Celebrus Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BT Group Plc and Celebrus Technologies plc, you can compare the effects of market volatilities on BT Group and Celebrus Technologies 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 BT Group with a short position of Celebrus Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of BT Group and Celebrus Technologies.
Diversification Opportunities for BT Group and Celebrus Technologies
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BT-A and Celebrus is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding BT Group Plc and Celebrus Technologies plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celebrus Technologies plc and BT Group 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 BT Group Plc are associated (or correlated) with Celebrus Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Celebrus Technologies plc has no effect on the direction of BT Group i.e., BT Group and Celebrus Technologies go up and down completely randomly.
Pair Corralation between BT Group and Celebrus Technologies
Assuming the 90 days trading horizon BT Group Plc is expected to generate 0.84 times more return on investment than Celebrus Technologies. However, BT Group Plc is 1.19 times less risky than Celebrus Technologies. It trades about 0.31 of its potential returns per unit of risk. Celebrus Technologies plc is currently generating about 0.07 per unit of risk. If you would invest 14,030 in BT Group Plc on November 28, 2024 and sell it today you would earn a total of 1,400 from holding BT Group Plc or generate 9.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BT Group Plc vs. Celebrus Technologies plc
Performance |
| Timeline |
| BT Group Plc |
| Celebrus Technologies plc |
BT Group and Celebrus Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BT Group and Celebrus Technologies
The main advantage of trading using opposite BT Group and Celebrus Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BT Group position performs unexpectedly, Celebrus Technologies 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 Celebrus Technologies will offset losses from the drop in Celebrus Technologies' long position.| BT Group vs. Atalaya Mining | BT Group vs. Metals Exploration Plc | BT Group vs. Geely Automobile Holdings | BT Group vs. Molson Coors Beverage |
| Celebrus Technologies vs. GB Group plc | Celebrus Technologies vs. Pensionbee Group PLC | Celebrus Technologies vs. Dotdigital Group Plc | Celebrus Technologies vs. AdvancedAdvT |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| CEOs Directory Screen CEOs from public companies around the world |