Correlation Between Booking Holdings and Ballantyne Strong
Can any of the company-specific risk be diversified away by investing in both Booking Holdings and Ballantyne Strong 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 Booking Holdings and Ballantyne Strong into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Booking Holdings and Ballantyne Strong, you can compare the effects of market volatilities on Booking Holdings and Ballantyne Strong 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 Booking Holdings with a short position of Ballantyne Strong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Booking Holdings and Ballantyne Strong.
Diversification Opportunities for Booking Holdings and Ballantyne Strong
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Booking and Ballantyne is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Booking Holdings and Ballantyne Strong in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ballantyne Strong and Booking Holdings 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 Booking Holdings are associated (or correlated) with Ballantyne Strong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ballantyne Strong has no effect on the direction of Booking Holdings i.e., Booking Holdings and Ballantyne Strong go up and down completely randomly.
Pair Corralation between Booking Holdings and Ballantyne Strong
If you would invest 265.00 in Ballantyne Strong on January 19, 2024 and sell it today you would earn a total of 0.00 from holding Ballantyne Strong or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Booking Holdings vs. Ballantyne Strong
Performance |
| Timeline |
| Booking Holdings |
| Ballantyne Strong |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Booking Holdings and Ballantyne Strong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Booking Holdings and Ballantyne Strong
The main advantage of trading using opposite Booking Holdings and Ballantyne Strong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Booking Holdings position performs unexpectedly, Ballantyne Strong 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 Ballantyne Strong will offset losses from the drop in Ballantyne Strong's long position.| Booking Holdings vs. TUI AG | Booking Holdings vs. Inspirato | Booking Holdings vs. TripAdvisor | Booking Holdings vs. Travel Leisure Co |
| Ballantyne Strong vs. Quanex Building Products | Ballantyne Strong vs. Seche Environnement SA | Ballantyne Strong vs. Lizhan Environmental | Ballantyne Strong vs. Cardinal Health |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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