Correlation Between BreadTalk Group and WildBrain
Can any of the company-specific risk be diversified away by investing in both BreadTalk Group and WildBrain 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 BreadTalk Group and WildBrain into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BreadTalk Group Limited and WildBrain, you can compare the effects of market volatilities on BreadTalk Group and WildBrain 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 BreadTalk Group with a short position of WildBrain. Check out your portfolio center. Please also check ongoing floating volatility patterns of BreadTalk Group and WildBrain.
Diversification Opportunities for BreadTalk Group and WildBrain
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BreadTalk and WildBrain is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BreadTalk Group Limited and WildBrain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WildBrain and BreadTalk Group 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 BreadTalk Group Limited are associated (or correlated) with WildBrain. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WildBrain has no effect on the direction of BreadTalk Group i.e., BreadTalk Group and WildBrain go up and down completely randomly.
Pair Corralation between BreadTalk Group and WildBrain
If you would invest (100.00) in WildBrain on January 26, 2024 and sell it today you would earn a total of 100.00 from holding WildBrain or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
BreadTalk Group Limited vs. WildBrain
Performance |
Timeline |
BreadTalk Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
WildBrain |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
BreadTalk Group and WildBrain Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with BreadTalk Group and WildBrain
The main advantage of trading using opposite BreadTalk Group and WildBrain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BreadTalk Group position performs unexpectedly, WildBrain 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 WildBrain will offset losses from the drop in WildBrain's long position.BreadTalk Group vs. Air Transport Services | BreadTalk Group vs. Hawaiian Holdings | BreadTalk Group vs. National CineMedia | BreadTalk Group vs. Glacier Media |
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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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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