Correlation Between British Amer and Coreshares Index
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By analyzing existing cross correlation between British American Tobacco and Coreshares Index Tracker, you can compare the effects of market volatilities on British Amer and Coreshares Index 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 British Amer with a short position of Coreshares Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of British Amer and Coreshares Index.
Diversification Opportunities for British Amer and Coreshares Index
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between British and Coreshares is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding British American Tobacco and Coreshares Index Tracker in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coreshares Index Tracker and British Amer 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 British American Tobacco are associated (or correlated) with Coreshares Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coreshares Index Tracker has no effect on the direction of British Amer i.e., British Amer and Coreshares Index go up and down completely randomly.
Pair Corralation between British Amer and Coreshares Index
Assuming the 90 days trading horizon British American Tobacco is expected to generate 1.34 times more return on investment than Coreshares Index. However, British Amer is 1.34 times more volatile than Coreshares Index Tracker. It trades about 0.44 of its potential returns per unit of risk. Coreshares Index Tracker is currently generating about -0.09 per unit of risk. If you would invest 6,154,700 in British American Tobacco on August 28, 2024 and sell it today you would earn a total of 609,600 from holding British American Tobacco or generate 9.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
British American Tobacco vs. Coreshares Index Tracker
Performance |
| Timeline |
| British American Tobacco |
| Coreshares Index Tracker |
British Amer and Coreshares Index Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with British Amer and Coreshares Index
The main advantage of trading using opposite British Amer and Coreshares Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if British Amer position performs unexpectedly, Coreshares Index 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 Coreshares Index will offset losses from the drop in Coreshares Index's long position.| British Amer vs. Sasol Ltd Bee | British Amer vs. Growthpoint Properties | British Amer vs. AfricaRhodium ETF | British Amer vs. CoreShares Preference Share |
| Coreshares Index vs. Europa Metals | Coreshares Index vs. British American Tobacco | Coreshares Index vs. Kap Industrial Holdings | Coreshares Index vs. Anglo American Platinum |
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.
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