Correlation Between BBB Foods and AETNA
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By analyzing existing cross correlation between BBB Foods and AETNA INC NEW, you can compare the effects of market volatilities on BBB Foods and AETNA 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 BBB Foods with a short position of AETNA. Check out your portfolio center. Please also check ongoing floating volatility patterns of BBB Foods and AETNA.
Diversification Opportunities for BBB Foods and AETNA
Modest diversification
The 3 months correlation between BBB and AETNA is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding BBB Foods and AETNA INC NEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AETNA INC NEW and BBB Foods 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 BBB Foods are associated (or correlated) with AETNA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AETNA INC NEW has no effect on the direction of BBB Foods i.e., BBB Foods and AETNA go up and down completely randomly.
Pair Corralation between BBB Foods and AETNA
Given the investment horizon of 90 days BBB Foods is expected to generate 17.39 times more return on investment than AETNA. However, BBB Foods is 17.39 times more volatile than AETNA INC NEW. It trades about 0.09 of its potential returns per unit of risk. AETNA INC NEW is currently generating about 0.02 per unit of risk. If you would invest 1,750 in BBB Foods on August 31, 2024 and sell it today you would earn a total of 1,072 from holding BBB Foods or generate 61.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 53.95% |
| Values | Daily Returns |
BBB Foods vs. AETNA INC NEW
Performance |
| Timeline |
| BBB Foods |
| AETNA INC NEW |
BBB Foods and AETNA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BBB Foods and AETNA
The main advantage of trading using opposite BBB Foods and AETNA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BBB Foods position performs unexpectedly, AETNA 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 AETNA will offset losses from the drop in AETNA's long position.| BBB Foods vs. Citizens Bancorp Investment | BBB Foods vs. Stepstone Group | BBB Foods vs. Independence Realty Trust | BBB Foods vs. Western Sierra Mining |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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