Correlation Between British Amer and Indexco Limited
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By analyzing existing cross correlation between British American Tobacco and Indexco Limited , you can compare the effects of market volatilities on British Amer and Indexco Limited 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 Indexco Limited. Check out your portfolio center. Please also check ongoing floating volatility patterns of British Amer and Indexco Limited.
Diversification Opportunities for British Amer and Indexco Limited
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between British and Indexco is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding British American Tobacco and Indexco Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indexco Limited 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 Indexco Limited. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indexco Limited has no effect on the direction of British Amer i.e., British Amer and Indexco Limited go up and down completely randomly.
Pair Corralation between British Amer and Indexco Limited
Assuming the 90 days trading horizon British American Tobacco is expected to generate 1.42 times more return on investment than Indexco Limited. However, British Amer is 1.42 times more volatile than Indexco Limited . It trades about 0.03 of its potential returns per unit of risk. Indexco Limited is currently generating about 0.03 per unit of risk. If you would invest 5,892,293 in British American Tobacco on August 30, 2024 and sell it today you would earn a total of 939,707 from holding British American Tobacco or generate 15.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.59% |
| Values | Daily Returns |
British American Tobacco vs. Indexco Limited
Performance |
| Timeline |
| British American Tobacco |
| Indexco Limited |
British Amer and Indexco Limited Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with British Amer and Indexco Limited
The main advantage of trading using opposite British Amer and Indexco Limited positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if British Amer position performs unexpectedly, Indexco Limited 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 Indexco Limited will offset losses from the drop in Indexco Limited's long position.| British Amer vs. HomeChoice Investments | British Amer vs. Harmony Gold Mining | British Amer vs. Astoria Investments | British Amer vs. CA Sales Holdings |
| Indexco Limited vs. FNB ETN on | Indexco Limited vs. Satrix MSCI World | Indexco Limited vs. GSETNC | Indexco Limited vs. Satrix Swix Top |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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