Correlation Between BC Craft and Hypera SA
Can any of the company-specific risk be diversified away by investing in both BC Craft and Hypera SA 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 BC Craft and Hypera SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BC Craft Supply and Hypera SA, you can compare the effects of market volatilities on BC Craft and Hypera SA 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 BC Craft with a short position of Hypera SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of BC Craft and Hypera SA.
Diversification Opportunities for BC Craft and Hypera SA
Pay attention - limited upside
The 3 months correlation between CRFTF and Hypera is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BC Craft Supply and Hypera SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hypera SA and BC Craft 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 BC Craft Supply are associated (or correlated) with Hypera SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hypera SA has no effect on the direction of BC Craft i.e., BC Craft and Hypera SA go up and down completely randomly.
Pair Corralation between BC Craft and Hypera SA
Assuming the 90 days horizon BC Craft Supply is expected to generate 19.51 times more return on investment than Hypera SA. However, BC Craft is 19.51 times more volatile than Hypera SA. It trades about 0.07 of its potential returns per unit of risk. Hypera SA is currently generating about -0.07 per unit of risk. If you would invest 11.00 in BC Craft Supply on August 30, 2024 and sell it today you would lose (9.66) from holding BC Craft Supply or give up 87.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BC Craft Supply vs. Hypera SA
Performance |
| Timeline |
| BC Craft Supply |
| Hypera SA |
BC Craft and Hypera SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BC Craft and Hypera SA
The main advantage of trading using opposite BC Craft and Hypera SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BC Craft position performs unexpectedly, Hypera SA 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 Hypera SA will offset losses from the drop in Hypera SA's long position.| BC Craft vs. Green Cures Botanical | BC Craft vs. Cann American Corp | BC Craft vs. Rimrock Gold Corp | BC Craft vs. Galexxy Holdings |
| Hypera SA vs. Green Cures Botanical | Hypera SA vs. Cann American Corp | Hypera SA vs. Rimrock Gold Corp | Hypera SA vs. Galexxy Holdings |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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