Correlation Between BTC Health and Advanced Braking
Can any of the company-specific risk be diversified away by investing in both BTC Health and Advanced Braking 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 BTC Health and Advanced Braking into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BTC Health Limited and Advanced Braking Technology, you can compare the effects of market volatilities on BTC Health and Advanced Braking 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 BTC Health with a short position of Advanced Braking. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTC Health and Advanced Braking.
Diversification Opportunities for BTC Health and Advanced Braking
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BTC and Advanced is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding BTC Health Limited and Advanced Braking Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advanced Braking Tec and BTC Health 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 BTC Health Limited are associated (or correlated) with Advanced Braking. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advanced Braking Tec has no effect on the direction of BTC Health i.e., BTC Health and Advanced Braking go up and down completely randomly.
Pair Corralation between BTC Health and Advanced Braking
Assuming the 90 days trading horizon BTC Health Limited is expected to generate 2.03 times more return on investment than Advanced Braking. However, BTC Health is 2.03 times more volatile than Advanced Braking Technology. It trades about 0.25 of its potential returns per unit of risk. Advanced Braking Technology is currently generating about 0.04 per unit of risk. If you would invest 5.90 in BTC Health Limited on October 11, 2024 and sell it today you would earn a total of 1.50 from holding BTC Health Limited or generate 25.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
BTC Health Limited vs. Advanced Braking Technology
Performance |
| Timeline |
| BTC Health Limited |
| Advanced Braking Tec |
BTC Health and Advanced Braking Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BTC Health and Advanced Braking
The main advantage of trading using opposite BTC Health and Advanced Braking positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTC Health position performs unexpectedly, Advanced Braking 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 Advanced Braking will offset losses from the drop in Advanced Braking's long position.| BTC Health vs. Neurotech International | BTC Health vs. Retail Food Group | BTC Health vs. Charter Hall Retail | BTC Health vs. Zoom2u Technologies |
| Advanced Braking vs. Australian Agricultural | Advanced Braking vs. Pinnacle Investment Management | Advanced Braking vs. Spirit Telecom | Advanced Braking vs. Microequities Asset Management |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |