Correlation Between Chia and Barbeque Nation
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By analyzing existing cross correlation between Chia and Barbeque Nation Hospitality, you can compare the effects of market volatilities on Chia and Barbeque Nation 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 Chia with a short position of Barbeque Nation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chia and Barbeque Nation.
Diversification Opportunities for Chia and Barbeque Nation
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Chia and Barbeque is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Chia and Barbeque Nation Hospitality in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barbeque Nation Hosp and Chia 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 Chia are associated (or correlated) with Barbeque Nation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barbeque Nation Hosp has no effect on the direction of Chia i.e., Chia and Barbeque Nation go up and down completely randomly.
Pair Corralation between Chia and Barbeque Nation
Assuming the 90 days trading horizon Chia is expected to generate 3.84 times more return on investment than Barbeque Nation. However, Chia is 3.84 times more volatile than Barbeque Nation Hospitality. It trades about 0.05 of its potential returns per unit of risk. Barbeque Nation Hospitality is currently generating about -0.61 per unit of risk. If you would invest 2,354 in Chia on October 18, 2024 and sell it today you would earn a total of 63.00 from holding Chia or generate 2.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Chia vs. Barbeque Nation Hospitality
Performance |
| Timeline |
| Chia |
| Barbeque Nation Hosp |
Chia and Barbeque Nation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chia and Barbeque Nation
The main advantage of trading using opposite Chia and Barbeque Nation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chia position performs unexpectedly, Barbeque Nation 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 Barbeque Nation will offset losses from the drop in Barbeque Nation's long position.The idea behind Chia and Barbeque Nation Hospitality pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Barbeque Nation vs. Aban Offshore Limited | Barbeque Nation vs. Future Retail Limited | Barbeque Nation vs. Welspun Investments and | Barbeque Nation vs. AUTHUM INVESTMENT INFRASTRUCTU |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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