Correlation Between Group 6 and British Amer
Can any of the company-specific risk be diversified away by investing in both Group 6 and British Amer 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 Group 6 and British Amer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Group 6 Metals and Bailador Technology Invest, you can compare the effects of market volatilities on Group 6 and British Amer 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 Group 6 with a short position of British Amer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Group 6 and British Amer.
Diversification Opportunities for Group 6 and British Amer
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Group and British is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Group 6 Metals and Bailador Technology Invest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bailador Technology and Group 6 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 Group 6 Metals are associated (or correlated) with British Amer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bailador Technology has no effect on the direction of Group 6 i.e., Group 6 and British Amer go up and down completely randomly.
Pair Corralation between Group 6 and British Amer
If you would invest 2.50 in Group 6 Metals on September 14, 2024 and sell it today you would earn a total of 0.00 from holding Group 6 Metals or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Group 6 Metals vs. Bailador Technology Invest
Performance |
| Timeline |
| Group 6 Metals |
| Bailador Technology |
Group 6 and British Amer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Group 6 and British Amer
The main advantage of trading using opposite Group 6 and British Amer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Group 6 position performs unexpectedly, British Amer 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 Amer will offset losses from the drop in British Amer's long position.| Group 6 vs. Insignia Financial | Group 6 vs. Pioneer Credit | Group 6 vs. Legacy Iron Ore | Group 6 vs. Tombador Iron |
| British Amer vs. Audio Pixels Holdings | British Amer vs. Iodm | British Amer vs. Nsx | British Amer vs. TTG Fintech |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |