Correlation Between Fulcrum Metals and British American
Can any of the company-specific risk be diversified away by investing in both Fulcrum Metals and British American 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 Fulcrum Metals and British American into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fulcrum Metals PLC and British American Tobacco, you can compare the effects of market volatilities on Fulcrum Metals and British American 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 Fulcrum Metals with a short position of British American. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fulcrum Metals and British American.
Diversification Opportunities for Fulcrum Metals and British American
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fulcrum and British is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Fulcrum Metals PLC and British American Tobacco in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on British American Tobacco and Fulcrum 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 Fulcrum Metals PLC are associated (or correlated) with British American. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of British American Tobacco has no effect on the direction of Fulcrum Metals i.e., Fulcrum Metals and British American go up and down completely randomly.
Pair Corralation between Fulcrum Metals and British American
If you would invest 3,666 in British American Tobacco on September 19, 2024 and sell it today you would earn a total of 61.00 from holding British American Tobacco or generate 1.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fulcrum Metals PLC vs. British American Tobacco
Performance |
| Timeline |
| Fulcrum Metals PLC |
| British American Tobacco |
Fulcrum Metals and British American Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fulcrum Metals and British American
The main advantage of trading using opposite Fulcrum Metals and British American positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fulcrum Metals position performs unexpectedly, British American 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 British American will offset losses from the drop in British American's long position.| Fulcrum Metals vs. Central Asia Metals | Fulcrum Metals vs. Naked Wines plc | Fulcrum Metals vs. Eastman Chemical Co | Fulcrum Metals vs. Fevertree Drinks Plc |
| British American vs. Ocean Harvest Technology | British American vs. Allianz Technology Trust | British American vs. Auction Technology Group | British American vs. Cognizant Technology Solutions |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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