Correlation Between BTS Group and Altria
Can any of the company-specific risk be diversified away by investing in both BTS Group and Altria 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 BTS Group and Altria into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BTS Group Holdings and Altria Group, you can compare the effects of market volatilities on BTS Group and Altria 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 BTS Group with a short position of Altria. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTS Group and Altria.
Diversification Opportunities for BTS Group and Altria
Very weak diversification
The 3 months correlation between BTS and Altria is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding BTS Group Holdings and Altria Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altria Group and BTS Group 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 BTS Group Holdings are associated (or correlated) with Altria. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altria Group has no effect on the direction of BTS Group i.e., BTS Group and Altria go up and down completely randomly.
Pair Corralation between BTS Group and Altria
If you would invest 5,345 in Altria Group on November 27, 2024 and sell it today you would earn a total of 180.00 from holding Altria Group or generate 3.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BTS Group Holdings vs. Altria Group
Performance |
| Timeline |
| BTS Group Holdings |
| Altria Group |
BTS Group and Altria Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BTS Group and Altria
The main advantage of trading using opposite BTS Group and Altria positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTS Group position performs unexpectedly, Altria 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 Altria will offset losses from the drop in Altria's long position.| BTS Group vs. Denison Mines Corp | BTS Group vs. Life Time Group | BTS Group vs. Bloomin Brands | BTS Group vs. Biglari Holdings |
| Altria vs. British American Tobacco | Altria vs. Universal | Altria vs. Imperial Brands PLC | Altria vs. Philip Morris International |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |