Correlation Between Bt Brands and BTS Group
Can any of the company-specific risk be diversified away by investing in both Bt Brands and BTS Group 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 Brands and BTS Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bt Brands and BTS Group Holdings, you can compare the effects of market volatilities on Bt Brands and BTS Group 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 Brands with a short position of BTS Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bt Brands and BTS Group.
Diversification Opportunities for Bt Brands and BTS Group
Pay attention - limited upside
The 3 months correlation between BTBD and BTS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bt Brands and BTS Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BTS Group Holdings and Bt Brands 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 Brands are associated (or correlated) with BTS Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BTS Group Holdings has no effect on the direction of Bt Brands i.e., Bt Brands and BTS Group go up and down completely randomly.
Pair Corralation between Bt Brands and BTS Group
If you would invest 161.00 in Bt Brands on September 14, 2024 and sell it today you would lose (1.00) from holding Bt Brands or give up 0.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bt Brands vs. BTS Group Holdings
Performance |
| Timeline |
| Bt Brands |
| BTS Group Holdings |
Bt Brands and BTS Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bt Brands and BTS Group
The main advantage of trading using opposite Bt Brands and BTS Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bt Brands position performs unexpectedly, BTS Group 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 BTS Group will offset losses from the drop in BTS Group's long position.The idea behind Bt Brands and BTS Group Holdings pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| BTS Group vs. RCI Hospitality Holdings | BTS Group vs. Rave Restaurant Group | BTS Group vs. Doubledown Interactive Co | BTS Group vs. Bt Brands |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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