Correlation Between BTC Health and Ashley Services
Can any of the company-specific risk be diversified away by investing in both BTC Health and Ashley Services 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 Ashley Services 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 Ashley Services Group, you can compare the effects of market volatilities on BTC Health and Ashley Services 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 Ashley Services. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTC Health and Ashley Services.
Diversification Opportunities for BTC Health and Ashley Services
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BTC and Ashley is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding BTC Health Limited and Ashley Services Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ashley Services Group 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 Ashley Services. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ashley Services Group has no effect on the direction of BTC Health i.e., BTC Health and Ashley Services go up and down completely randomly.
Pair Corralation between BTC Health and Ashley Services
Assuming the 90 days trading horizon BTC Health Limited is expected to generate 1.23 times more return on investment than Ashley Services. However, BTC Health is 1.23 times more volatile than Ashley Services Group. It trades about 0.04 of its potential returns per unit of risk. Ashley Services Group is currently generating about -0.04 per unit of risk. If you would invest 3.50 in BTC Health Limited on October 25, 2024 and sell it today you would earn a total of 1.60 from holding BTC Health Limited or generate 45.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
BTC Health Limited vs. Ashley Services Group
Performance |
| Timeline |
| BTC Health Limited |
| Ashley Services Group |
BTC Health and Ashley Services Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BTC Health and Ashley Services
The main advantage of trading using opposite BTC Health and Ashley Services positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTC Health position performs unexpectedly, Ashley Services 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 Ashley Services will offset losses from the drop in Ashley Services' long position.| BTC Health vs. Cosmo Metals | BTC Health vs. Bisalloy Steel Group | BTC Health vs. Stelar Metals | BTC Health vs. Champion Iron |
| Ashley Services vs. Mach7 Technologies | Ashley Services vs. Macquarie Technology Group | Ashley Services vs. High Tech Metals | Ashley Services vs. Pure Foods Tasmania |
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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