Correlation Between OFFICE DEPOT and BRIT AMER
Can any of the company-specific risk be diversified away by investing in both OFFICE DEPOT and BRIT 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 OFFICE DEPOT and BRIT AMER into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OFFICE DEPOT and BRIT AMER TOBACCO, you can compare the effects of market volatilities on OFFICE DEPOT and BRIT 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 OFFICE DEPOT with a short position of BRIT AMER. Check out your portfolio center. Please also check ongoing floating volatility patterns of OFFICE DEPOT and BRIT AMER.
Diversification Opportunities for OFFICE DEPOT and BRIT AMER
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between OFFICE and BRIT is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding OFFICE DEPOT and BRIT AMER TOBACCO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BRIT AMER TOBACCO and OFFICE DEPOT 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 OFFICE DEPOT are associated (or correlated) with BRIT AMER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BRIT AMER TOBACCO has no effect on the direction of OFFICE DEPOT i.e., OFFICE DEPOT and BRIT AMER go up and down completely randomly.
Pair Corralation between OFFICE DEPOT and BRIT AMER
If you would invest 3,137 in BRIT AMER TOBACCO on October 24, 2024 and sell it today you would earn a total of 358.00 from holding BRIT AMER TOBACCO or generate 11.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
OFFICE DEPOT vs. BRIT AMER TOBACCO
Performance |
| Timeline |
| OFFICE DEPOT |
| BRIT AMER TOBACCO |
OFFICE DEPOT and BRIT AMER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OFFICE DEPOT and BRIT AMER
The main advantage of trading using opposite OFFICE DEPOT and BRIT AMER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OFFICE DEPOT position performs unexpectedly, BRIT 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 BRIT AMER will offset losses from the drop in BRIT AMER's long position.| OFFICE DEPOT vs. United Rentals | OFFICE DEPOT vs. Thai Beverage Public | OFFICE DEPOT vs. China Development Bank | OFFICE DEPOT vs. Sumitomo Mitsui Construction |
| BRIT AMER vs. OFFICE DEPOT | BRIT AMER vs. Focus Home Interactive | BRIT AMER vs. QBE Insurance Group | BRIT AMER vs. Haier Smart Home |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |