Correlation Between British Amer and Wilmington Capital
Can any of the company-specific risk be diversified away by investing in both British Amer and Wilmington Capital 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 British Amer and Wilmington Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between biOasis Technologies and Wilmington Capital Management, you can compare the effects of market volatilities on British Amer and Wilmington Capital 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 Wilmington Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of British Amer and Wilmington Capital.
Diversification Opportunities for British Amer and Wilmington Capital
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between British and Wilmington is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding biOasis Technologies and Wilmington Capital Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wilmington Capital 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 biOasis Technologies are associated (or correlated) with Wilmington Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wilmington Capital has no effect on the direction of British Amer i.e., British Amer and Wilmington Capital go up and down completely randomly.
Pair Corralation between British Amer and Wilmington Capital
Assuming the 90 days horizon biOasis Technologies is expected to generate 124.04 times more return on investment than Wilmington Capital. However, British Amer is 124.04 times more volatile than Wilmington Capital Management. It trades about 0.27 of its potential returns per unit of risk. Wilmington Capital Management is currently generating about -0.22 per unit of risk. If you would invest 127.00 in biOasis Technologies on September 4, 2024 and sell it today you would lose (2.00) from holding biOasis Technologies or give up 1.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
biOasis Technologies vs. Wilmington Capital Management
Performance |
| Timeline |
| biOasis Technologies |
| Wilmington Capital |
British Amer and Wilmington Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with British Amer and Wilmington Capital
The main advantage of trading using opposite British Amer and Wilmington Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if British Amer position performs unexpectedly, Wilmington Capital 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 Wilmington Capital will offset losses from the drop in Wilmington Capital's long position.| British Amer vs. Wilmington Capital Management | British Amer vs. Quisitive Technology Solutions | British Amer vs. Chemtrade Logistics Income | British Amer vs. Gatos Silver |
| Wilmington Capital vs. Queens Road Capital | Wilmington Capital vs. Westshore Terminals Investment | Wilmington Capital vs. Canadian General Investments | Wilmington Capital vs. 2028 Investment Grade |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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