Correlation Between BUA FOODS and STACO INSURANCE
Specify exactly 2 symbols:
By analyzing existing cross correlation between BUA FOODS PLC and STACO INSURANCE PLC, you can compare the effects of market volatilities on BUA FOODS and STACO INSURANCE 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 BUA FOODS with a short position of STACO INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of BUA FOODS and STACO INSURANCE.
Diversification Opportunities for BUA FOODS and STACO INSURANCE
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between BUA and STACO is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding BUA FOODS PLC and STACO INSURANCE PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STACO INSURANCE PLC and BUA FOODS 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 BUA FOODS PLC are associated (or correlated) with STACO INSURANCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STACO INSURANCE PLC has no effect on the direction of BUA FOODS i.e., BUA FOODS and STACO INSURANCE go up and down completely randomly.
Pair Corralation between BUA FOODS and STACO INSURANCE
If you would invest 48.00 in STACO INSURANCE PLC on September 2, 2024 and sell it today you would earn a total of 0.00 from holding STACO INSURANCE PLC or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
BUA FOODS PLC vs. STACO INSURANCE PLC
Performance |
| Timeline |
| BUA FOODS PLC |
| STACO INSURANCE PLC |
BUA FOODS and STACO INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BUA FOODS and STACO INSURANCE
The main advantage of trading using opposite BUA FOODS and STACO INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BUA FOODS position performs unexpectedly, STACO INSURANCE 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 STACO INSURANCE will offset losses from the drop in STACO INSURANCE's long position.The idea behind BUA FOODS PLC and STACO INSURANCE PLC pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| STACO INSURANCE vs. VFD GROUP | STACO INSURANCE vs. DEAP CAPITAL MANAGEMENT | STACO INSURANCE vs. VETIVA INDUSTRIAL ETF |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |