Correlation Between BT Group and Kemiao Garment
Can any of the company-specific risk be diversified away by investing in both BT Group and Kemiao Garment 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 BT Group and Kemiao Garment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BT Group Plc and Kemiao Garment Holding, you can compare the effects of market volatilities on BT Group and Kemiao Garment 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 BT Group with a short position of Kemiao Garment. Check out your portfolio center. Please also check ongoing floating volatility patterns of BT Group and Kemiao Garment.
Diversification Opportunities for BT Group and Kemiao Garment
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BT Group and Kemiao is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BT Group Plc and Kemiao Garment Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kemiao Garment Holding and BT 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 BT Group Plc are associated (or correlated) with Kemiao Garment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kemiao Garment Holding has no effect on the direction of BT Group i.e., BT Group and Kemiao Garment go up and down completely randomly.
Pair Corralation between BT Group and Kemiao Garment
If you would invest 0.00 in Kemiao Garment Holding on January 26, 2024 and sell it today you would earn a total of 0.00 from holding Kemiao Garment Holding or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
BT Group Plc vs. Kemiao Garment Holding
Performance |
Timeline |
BT Group Plc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Kemiao Garment Holding |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
BT Group and Kemiao Garment Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with BT Group and Kemiao Garment
The main advantage of trading using opposite BT Group and Kemiao Garment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BT Group position performs unexpectedly, Kemiao Garment 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 Kemiao Garment will offset losses from the drop in Kemiao Garment's long position.BT Group vs. Palomar Holdings | BT Group vs. Flexible Solutions International | BT Group vs. Employers Holdings | BT Group vs. Aegon NV ADR |
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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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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