Correlation Between Maggie Beer and British Amer
Can any of the company-specific risk be diversified away by investing in both Maggie Beer 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 Maggie Beer and British Amer 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 Bailador Technology Invest, you can compare the effects of market volatilities on Maggie Beer 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 Maggie Beer with a short position of British Amer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maggie Beer and British Amer.
Diversification Opportunities for Maggie Beer and British Amer
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Maggie and British is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Maggie Beer Holdings and Bailador Technology Invest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bailador Technology 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 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 Maggie Beer i.e., Maggie Beer and British Amer go up and down completely randomly.
Pair Corralation between Maggie Beer and British Amer
Assuming the 90 days trading horizon Maggie Beer Holdings is expected to generate 3.55 times more return on investment than British Amer. However, Maggie Beer is 3.55 times more volatile than Bailador Technology Invest. It trades about 0.05 of its potential returns per unit of risk. Bailador Technology Invest is currently generating about -0.23 per unit of risk. If you would invest 5.70 in Maggie Beer Holdings on October 12, 2024 and sell it today you would earn a total of 0.10 from holding Maggie Beer Holdings or generate 1.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maggie Beer Holdings vs. Bailador Technology Invest
Performance |
| Timeline |
| Maggie Beer Holdings |
| Bailador Technology |
Maggie Beer and British Amer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maggie Beer and British Amer
The main advantage of trading using opposite Maggie Beer and British Amer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maggie Beer 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.| Maggie Beer vs. Retail Food Group | Maggie Beer vs. Vulcan Steel | Maggie Beer vs. Truscott Mining Corp | Maggie Beer vs. Phoslock Environmental Technologies |
| British Amer vs. Sports Entertainment Group | British Amer vs. Maggie Beer Holdings | British Amer vs. Kip McGrath Education | British Amer vs. ABACUS STORAGE KING |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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