Correlation Between Cboe UK and BT Group
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By analyzing existing cross correlation between Cboe UK Consumer and BT Group Plc, you can compare the effects of market volatilities on Cboe UK and BT Group 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 Cboe UK with a short position of BT Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cboe UK and BT Group.
Diversification Opportunities for Cboe UK and BT Group
Modest diversification
The 3 months correlation between Cboe and BT-A is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Cboe UK Consumer and BT Group Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BT Group Plc and Cboe UK 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 Cboe UK Consumer are associated (or correlated) with BT Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BT Group Plc has no effect on the direction of Cboe UK i.e., Cboe UK and BT Group go up and down completely randomly.
Pair Corralation between Cboe UK and BT Group
Assuming the 90 days trading horizon Cboe UK Consumer is expected to generate 0.47 times more return on investment than BT Group. However, Cboe UK Consumer is 2.14 times less risky than BT Group. It trades about 0.15 of its potential returns per unit of risk. BT Group Plc is currently generating about 0.05 per unit of risk. If you would invest 2,297,557 in Cboe UK Consumer on August 26, 2024 and sell it today you would earn a total of 925,159 from holding Cboe UK Consumer or generate 40.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.81% |
| Values | Daily Returns |
Cboe UK Consumer vs. BT Group Plc
Performance |
| Timeline |
Cboe UK and BT Group Volatility Contrast
Predicted Return Density |
| Returns |
Cboe UK Consumer
Pair trading matchups for Cboe UK
BT Group Plc
Pair trading matchups for BT Group
Pair Trading with Cboe UK and BT Group
The main advantage of trading using opposite Cboe UK and BT Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cboe UK position performs unexpectedly, BT Group 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 BT Group will offset losses from the drop in BT Group's long position.| Cboe UK vs. FC Investment Trust | Cboe UK vs. Blackrock World Mining | Cboe UK vs. Kinnevik Investment AB | Cboe UK vs. The Mercantile Investment |
| BT Group vs. Molson Coors Beverage | BT Group vs. Monster Beverage Corp | BT Group vs. Science in Sport | BT Group vs. Compal Electronics GDR |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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