Correlation Between British Amer and NewFunds Shariah
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By analyzing existing cross correlation between British American Tobacco and NewFunds Shariah Top, you can compare the effects of market volatilities on British Amer and NewFunds Shariah 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 NewFunds Shariah. Check out your portfolio center. Please also check ongoing floating volatility patterns of British Amer and NewFunds Shariah.
Diversification Opportunities for British Amer and NewFunds Shariah
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between British and NewFunds is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding British American Tobacco and NewFunds Shariah Top in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NewFunds Shariah Top 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 NewFunds Shariah. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NewFunds Shariah Top has no effect on the direction of British Amer i.e., British Amer and NewFunds Shariah go up and down completely randomly.
Pair Corralation between British Amer and NewFunds Shariah
Assuming the 90 days trading horizon British Amer is expected to generate 8.69 times less return on investment than NewFunds Shariah. But when comparing it to its historical volatility, British American Tobacco is 1.05 times less risky than NewFunds Shariah. It trades about 0.05 of its potential returns per unit of risk. NewFunds Shariah Top is currently generating about 0.45 of returns per unit of risk over similar time horizon. If you would invest 34,200 in NewFunds Shariah Top on October 22, 2024 and sell it today you would earn a total of 2,900 from holding NewFunds Shariah Top or generate 8.48% 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. NewFunds Shariah Top
Performance |
| Timeline |
| British American Tobacco |
| NewFunds Shariah Top |
British Amer and NewFunds Shariah Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with British Amer and NewFunds Shariah
The main advantage of trading using opposite British Amer and NewFunds Shariah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if British Amer position performs unexpectedly, NewFunds Shariah 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 NewFunds Shariah will offset losses from the drop in NewFunds Shariah's long position.| British Amer vs. HomeChoice Investments | British Amer vs. Frontier Transport Holdings | British Amer vs. Harmony Gold Mining | British Amer vs. Hosken Consolidated Investments |
| NewFunds Shariah vs. NewFunds GOVI Exchange | NewFunds Shariah vs. NewFunds Low Volatility | NewFunds Shariah vs. NewFunds MAPPS Growth | NewFunds Shariah vs. NewFunds TRACI 3 |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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