Correlation Between BTU Metals and Advance United
Can any of the company-specific risk be diversified away by investing in both BTU Metals and Advance United 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 BTU Metals and Advance United into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BTU Metals Corp and Advance United Holdings, you can compare the effects of market volatilities on BTU Metals and Advance United 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 BTU Metals with a short position of Advance United. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTU Metals and Advance United.
Diversification Opportunities for BTU Metals and Advance United
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BTU and Advance is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BTU Metals Corp and Advance United Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advance United Holdings and BTU Metals 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 BTU Metals Corp are associated (or correlated) with Advance United. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advance United Holdings has no effect on the direction of BTU Metals i.e., BTU Metals and Advance United go up and down completely randomly.
Pair Corralation between BTU Metals and Advance United
If you would invest 1.91 in BTU Metals Corp on September 1, 2024 and sell it today you would earn a total of 0.14 from holding BTU Metals Corp or generate 7.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
BTU Metals Corp vs. Advance United Holdings
Performance |
| Timeline |
| BTU Metals Corp |
| Advance United Holdings |
BTU Metals and Advance United Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BTU Metals and Advance United
The main advantage of trading using opposite BTU Metals and Advance United positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTU Metals position performs unexpectedly, Advance United 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 Advance United will offset losses from the drop in Advance United's long position.| BTU Metals vs. Alaska Air Group | BTU Metals vs. Xtant Medical Holdings | BTU Metals vs. Westinghouse Air Brake | BTU Metals vs. AerSale Corp |
| Advance United vs. Aurion Resources | Advance United vs. Rio2 Limited | Advance United vs. Palamina Corp | Advance United vs. BTU Metals 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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