Correlation Between Gilla and British Amer
Can any of the company-specific risk be diversified away by investing in both Gilla and British Amer 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 Gilla and British Amer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gilla Inc and British American Tobacco, you can compare the effects of market volatilities on Gilla and British Amer 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 Gilla with a short position of British Amer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gilla and British Amer.
Diversification Opportunities for Gilla and British Amer
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Gilla and British is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Gilla Inc and British American Tobacco in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on British American Tobacco and Gilla 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 Gilla Inc are associated (or correlated) with British Amer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of British American Tobacco has no effect on the direction of Gilla i.e., Gilla and British Amer go up and down completely randomly.
Pair Corralation between Gilla and British Amer
If you would invest (100.00) in Gilla Inc on February 3, 2024 and sell it today you would earn a total of 100.00 from holding Gilla Inc or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Gilla Inc vs. British American Tobacco
Performance |
Timeline |
Gilla Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
British American Tobacco |
Gilla and British Amer Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Gilla and British Amer
The main advantage of trading using opposite Gilla and British Amer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gilla position performs unexpectedly, British Amer 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 British Amer will offset losses from the drop in British Amer's long position.Gilla vs. Arch Capital Group | Gilla vs. MSAD Insurance Group | Gilla vs. Sun Life Financial | Gilla vs. Boot Barn Holdings |
British Amer vs. Imperial Brands PLC | British Amer vs. Japan Tobacco ADR | British Amer vs. Imperial Brands PLC |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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