Correlation Between HE Equipment and BTS Group
Can any of the company-specific risk be diversified away by investing in both HE Equipment and BTS 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 HE Equipment and BTS Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HE Equipment Services and BTS Group Holdings, you can compare the effects of market volatilities on HE Equipment and BTS 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 HE Equipment with a short position of BTS Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of HE Equipment and BTS Group.
Diversification Opportunities for HE Equipment and BTS Group
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between HEES and BTS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding HE Equipment Services and BTS Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BTS Group Holdings and HE Equipment 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 HE Equipment Services are associated (or correlated) with BTS Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BTS Group Holdings has no effect on the direction of HE Equipment i.e., HE Equipment and BTS Group go up and down completely randomly.
Pair Corralation between HE Equipment and BTS Group
If you would invest 2,092 in BTS Group Holdings on September 14, 2024 and sell it today you would earn a total of 0.00 from holding BTS Group Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HE Equipment Services vs. BTS Group Holdings
Performance |
| Timeline |
| HE Equipment Services |
| BTS Group Holdings |
HE Equipment and BTS Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HE Equipment and BTS Group
The main advantage of trading using opposite HE Equipment and BTS Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HE Equipment position performs unexpectedly, BTS 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 BTS Group will offset losses from the drop in BTS Group's long position.| HE Equipment vs. McGrath RentCorp | HE Equipment vs. Custom Truck One | HE Equipment vs. Herc Holdings | HE Equipment vs. Alta Equipment Group |
| BTS Group vs. RCI Hospitality Holdings | BTS Group vs. Rave Restaurant Group | BTS Group vs. Doubledown Interactive Co | BTS Group vs. Bt Brands |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |