Correlation Between BTC Health and MA Financial
Can any of the company-specific risk be diversified away by investing in both BTC Health and MA Financial 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 MA Financial 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 MA Financial Group, you can compare the effects of market volatilities on BTC Health and MA Financial 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 MA Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTC Health and MA Financial.
Diversification Opportunities for BTC Health and MA Financial
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between BTC and MAF is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding BTC Health Limited and MA Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MA Financial 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 MA Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MA Financial Group has no effect on the direction of BTC Health i.e., BTC Health and MA Financial go up and down completely randomly.
Pair Corralation between BTC Health and MA Financial
Assuming the 90 days trading horizon BTC Health Limited is expected to generate 2.05 times more return on investment than MA Financial. However, BTC Health is 2.05 times more volatile than MA Financial Group. It trades about 0.0 of its potential returns per unit of risk. MA Financial Group is currently generating about -0.06 per unit of risk. If you would invest 5.80 in BTC Health Limited on September 1, 2024 and sell it today you would lose (0.10) from holding BTC Health Limited or give up 1.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BTC Health Limited vs. MA Financial Group
Performance |
| Timeline |
| BTC Health Limited |
| MA Financial Group |
BTC Health and MA Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BTC Health and MA Financial
The main advantage of trading using opposite BTC Health and MA Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTC Health position performs unexpectedly, MA Financial 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 MA Financial will offset losses from the drop in MA Financial's long position.| BTC Health vs. Aneka Tambang Tbk | BTC Health vs. Commonwealth Bank | BTC Health vs. Commonwealth Bank of | BTC Health vs. Australia and New |
| MA Financial vs. Hutchison Telecommunications | MA Financial vs. Apiam Animal Health | MA Financial vs. BTC Health Limited | MA Financial vs. Ramsay Health Care |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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