Correlation Between Maggie Beer and BTC Health
Can any of the company-specific risk be diversified away by investing in both Maggie Beer and BTC Health 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 Maggie Beer and BTC Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maggie Beer Holdings and BTC Health Limited, you can compare the effects of market volatilities on Maggie Beer and BTC Health 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 Maggie Beer with a short position of BTC Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maggie Beer and BTC Health.
Diversification Opportunities for Maggie Beer and BTC Health
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Maggie and BTC is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Maggie Beer Holdings and BTC Health Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BTC Health Limited and Maggie Beer 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 Maggie Beer Holdings are associated (or correlated) with BTC Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BTC Health Limited has no effect on the direction of Maggie Beer i.e., Maggie Beer and BTC Health go up and down completely randomly.
Pair Corralation between Maggie Beer and BTC Health
Assuming the 90 days trading horizon Maggie Beer Holdings is expected to under-perform the BTC Health. In addition to that, Maggie Beer is 1.04 times more volatile than BTC Health Limited. It trades about -0.06 of its total potential returns per unit of risk. BTC Health Limited is currently generating about 0.07 per unit of volatility. If you would invest 6.50 in BTC Health Limited on October 17, 2024 and sell it today you would earn a total of 0.90 from holding BTC Health Limited or generate 13.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.39% |
| Values | Daily Returns |
Maggie Beer Holdings vs. BTC Health Limited
Performance |
| Timeline |
| Maggie Beer Holdings |
| BTC Health Limited |
Maggie Beer and BTC Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maggie Beer and BTC Health
The main advantage of trading using opposite Maggie Beer and BTC Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maggie Beer position performs unexpectedly, BTC Health 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 BTC Health will offset losses from the drop in BTC Health's long position.| Maggie Beer vs. Clime Investment Management | Maggie Beer vs. BlackWall Property Funds | Maggie Beer vs. Computershare | Maggie Beer vs. Dexus Convenience Retail |
| BTC Health vs. Air New Zealand | BTC Health vs. Technology One | BTC Health vs. Mach7 Technologies | BTC Health vs. Maggie Beer Holdings |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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