Correlation Between Westpac Banking and BTC Health
Can any of the company-specific risk be diversified away by investing in both Westpac Banking 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 Westpac Banking and BTC Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Westpac Banking and BTC Health Limited, you can compare the effects of market volatilities on Westpac Banking 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 Westpac Banking with a short position of BTC Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Westpac Banking and BTC Health.
Diversification Opportunities for Westpac Banking and BTC Health
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Westpac and BTC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Westpac Banking 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 Westpac Banking 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 Westpac Banking 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 Westpac Banking i.e., Westpac Banking and BTC Health go up and down completely randomly.
Pair Corralation between Westpac Banking and BTC Health
If you would invest 10,032 in Westpac Banking on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Westpac Banking or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Westpac Banking vs. BTC Health Limited
Performance |
| Timeline |
| Westpac Banking |
| BTC Health Limited |
Westpac Banking and BTC Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Westpac Banking and BTC Health
The main advantage of trading using opposite Westpac Banking and BTC Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Westpac Banking 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.| Westpac Banking vs. Advanced Braking Technology | Westpac Banking vs. Talisman Mining | Westpac Banking vs. Regal Funds Management | Westpac Banking vs. Charter Hall Retail |
| BTC Health vs. Westpac Banking | BTC Health vs. Champion Iron | BTC Health vs. Ridley | BTC Health vs. Peel 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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