Correlation Between 4Imprint Group and BT Group
Can any of the company-specific risk be diversified away by investing in both 4Imprint Group and BT Group 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 4Imprint Group and BT Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 4Imprint Group Plc and BT Group Plc, you can compare the effects of market volatilities on 4Imprint Group 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 4Imprint Group with a short position of BT Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of 4Imprint Group and BT Group.
Diversification Opportunities for 4Imprint Group and BT Group
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 4Imprint and BT-A is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding 4Imprint Group Plc 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 4Imprint Group 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 4Imprint Group Plc 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 4Imprint Group i.e., 4Imprint Group and BT Group go up and down completely randomly.
Pair Corralation between 4Imprint Group and BT Group
Assuming the 90 days trading horizon 4Imprint Group is expected to generate 12.23 times less return on investment than BT Group. In addition to that, 4Imprint Group is 1.04 times more volatile than BT Group Plc. It trades about 0.02 of its total potential returns per unit of risk. BT Group Plc is currently generating about 0.28 per unit of volatility. If you would invest 13,785 in BT Group Plc on September 13, 2024 and sell it today you would earn a total of 1,415 from holding BT Group Plc or generate 10.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
4Imprint Group Plc vs. BT Group Plc
Performance |
| Timeline |
| 4Imprint Group Plc |
| BT Group Plc |
4Imprint Group and BT Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 4Imprint Group and BT Group
The main advantage of trading using opposite 4Imprint Group and BT Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 4Imprint Group 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.| 4Imprint Group vs. Smithson Investment Trust | 4Imprint Group vs. Intuitive Investments Group | 4Imprint Group vs. Liontrust Asset Management | 4Imprint Group vs. Aurora Investment Trust |
| BT Group vs. Monster Beverage Corp | BT Group vs. BW Offshore | BT Group vs. Discover Financial Services | BT Group vs. Sydbank |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Commodity Directory Find actively traded commodities issued by global exchanges |