Correlation Between BTS Group and Warner Music
Can any of the company-specific risk be diversified away by investing in both BTS Group and Warner Music 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 Warner Music 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 Warner Music Group, you can compare the effects of market volatilities on BTS Group and Warner Music 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 Warner Music. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTS Group and Warner Music.
Diversification Opportunities for BTS Group and Warner Music
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BTS and Warner is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BTS Group Holdings and Warner Music Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Warner Music 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 Warner Music. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Warner Music Group has no effect on the direction of BTS Group i.e., BTS Group and Warner Music go up and down completely randomly.
Pair Corralation between BTS Group and Warner Music
If you would invest 3,179 in Warner Music Group on September 1, 2024 and sell it today you would earn a total of 73.00 from holding Warner Music Group or generate 2.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BTS Group Holdings vs. Warner Music Group
Performance |
| Timeline |
| BTS Group Holdings |
| Warner Music Group |
BTS Group and Warner Music Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BTS Group and Warner Music
The main advantage of trading using opposite BTS Group and Warner Music positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTS Group position performs unexpectedly, Warner Music 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 Warner Music will offset losses from the drop in Warner Music's long position.| BTS Group vs. United Fire Group | BTS Group vs. Catalent | BTS Group vs. Mills Music Trust | BTS Group vs. NI Holdings |
| Warner Music vs. ADTRAN Inc | Warner Music vs. Belden Inc | Warner Music vs. ADC Therapeutics SA | Warner Music vs. Comtech Telecommunications Corp |
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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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