Correlation Between STANLN and BRP
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By analyzing existing cross correlation between STANLN 6301 09 JAN 29 and BRP Inc, you can compare the effects of market volatilities on STANLN and BRP 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 STANLN with a short position of BRP. Check out your portfolio center. Please also check ongoing floating volatility patterns of STANLN and BRP.
Diversification Opportunities for STANLN and BRP
Very good diversification
The 3 months correlation between STANLN and BRP is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding STANLN 6301 09 JAN 29 and BRP Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BRP Inc and STANLN 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 STANLN 6301 09 JAN 29 are associated (or correlated) with BRP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BRP Inc has no effect on the direction of STANLN i.e., STANLN and BRP go up and down completely randomly.
Pair Corralation between STANLN and BRP
Assuming the 90 days trading horizon STANLN 6301 09 JAN 29 is expected to generate 0.08 times more return on investment than BRP. However, STANLN 6301 09 JAN 29 is 12.77 times less risky than BRP. It trades about 0.15 of its potential returns per unit of risk. BRP Inc is currently generating about -0.09 per unit of risk. If you would invest 10,273 in STANLN 6301 09 JAN 29 on November 3, 2024 and sell it today you would earn a total of 46.00 from holding STANLN 6301 09 JAN 29 or generate 0.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 76.19% |
| Values | Daily Returns |
STANLN 6301 09 JAN 29 vs. BRP Inc
Performance |
| Timeline |
| STANLN 6301 09 |
| BRP Inc |
STANLN and BRP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with STANLN and BRP
The main advantage of trading using opposite STANLN and BRP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STANLN position performs unexpectedly, BRP 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 BRP will offset losses from the drop in BRP's long position.| STANLN vs. Cheche Group Class | STANLN vs. Reservoir Media | STANLN vs. Imax Corp | STANLN vs. Zoom Video Communications |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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