Correlation Between First Ship and Bt Brands
Can any of the company-specific risk be diversified away by investing in both First Ship and Bt Brands 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 First Ship and Bt Brands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Ship Lease and Bt Brands, you can compare the effects of market volatilities on First Ship and Bt Brands 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 First Ship with a short position of Bt Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Ship and Bt Brands.
Diversification Opportunities for First Ship and Bt Brands
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between First and BTBD is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding First Ship Lease and Bt Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bt Brands and First Ship 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 First Ship Lease are associated (or correlated) with Bt Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bt Brands has no effect on the direction of First Ship i.e., First Ship and Bt Brands go up and down completely randomly.
Pair Corralation between First Ship and Bt Brands
If you would invest 157.00 in Bt Brands on September 13, 2024 and sell it today you would earn a total of 6.00 from holding Bt Brands or generate 3.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Ship Lease vs. Bt Brands
Performance |
| Timeline |
| First Ship Lease |
| Bt Brands |
First Ship and Bt Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Ship and Bt Brands
The main advantage of trading using opposite First Ship and Bt Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Ship position performs unexpectedly, Bt Brands 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 Brands will offset losses from the drop in Bt Brands' long position.| First Ship vs. Tradeweb Markets | First Ship vs. Simon Property Group | First Ship vs. Newpark Resources | First Ship vs. Fast Retailing Co |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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