Correlation Between Event Hospitality and BTC Health
Can any of the company-specific risk be diversified away by investing in both Event Hospitality and BTC Health 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 Event Hospitality and BTC Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Event Hospitality and and BTC Health Limited, you can compare the effects of market volatilities on Event Hospitality and BTC Health 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 Event Hospitality with a short position of BTC Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Event Hospitality and BTC Health.
Diversification Opportunities for Event Hospitality and BTC Health
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Event and BTC is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Event Hospitality and and BTC Health Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BTC Health Limited and Event Hospitality 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 Event Hospitality and are associated (or correlated) with BTC Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BTC Health Limited has no effect on the direction of Event Hospitality i.e., Event Hospitality and BTC Health go up and down completely randomly.
Pair Corralation between Event Hospitality and BTC Health
Assuming the 90 days trading horizon Event Hospitality and is expected to generate 0.11 times more return on investment than BTC Health. However, Event Hospitality and is 8.71 times less risky than BTC Health. It trades about 0.29 of its potential returns per unit of risk. BTC Health Limited is currently generating about -0.15 per unit of risk. If you would invest 1,120 in Event Hospitality and on November 6, 2024 and sell it today you would earn a total of 63.00 from holding Event Hospitality and or generate 5.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Event Hospitality and vs. BTC Health Limited
Performance |
| Timeline |
| Event Hospitality |
| BTC Health Limited |
Event Hospitality and BTC Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Event Hospitality and BTC Health
The main advantage of trading using opposite Event Hospitality and BTC Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Event Hospitality position performs unexpectedly, BTC Health 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 BTC Health will offset losses from the drop in BTC Health's long position.| Event Hospitality vs. Charter Hall Retail | Event Hospitality vs. My Foodie Box | Event Hospitality vs. Computershare | Event Hospitality vs. Super Retail Group |
| BTC Health vs. Wt Financial Group | BTC Health vs. Commonwealth Bank of | BTC Health vs. National Storage REIT | BTC Health vs. Insignia Financial |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Transaction History View history of all your transactions and understand their impact on performance |