Correlation Between BBTV Holdings and Tinybeans Group

Can any of the company-specific risk be diversified away by investing in both BBTV Holdings and Tinybeans Group 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 BBTV Holdings and Tinybeans Group into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between BBTV Holdings and Tinybeans Group Limited, you can compare the effects of market volatilities on BBTV Holdings and Tinybeans Group 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 BBTV Holdings with a short position of Tinybeans Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of BBTV Holdings and Tinybeans Group.

Diversification Opportunities for BBTV Holdings and Tinybeans Group

-0.1

Correlation Coefficient

BBTV Holdings  Tinybeans Group

Good diversification

The 3 months correlation between BBTV and Tinybeans is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding BBTV Holdings and Tinybeans Group Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tinybeans Group and BBTV 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 BBTV Holdings are associated (or correlated) with Tinybeans Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tinybeans Group has no effect on the direction of BBTV Holdings i.e., BBTV Holdings and Tinybeans Group go up and down completely randomly.

Pair Corralation between BBTV Holdings and Tinybeans Group

If you would invest  26.00  in BBTV Holdings on September 3, 2024 and sell it today you would earn a total of  0.00  from holding BBTV Holdings or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	5.0%
Values	Daily Returns

BBTV Holdings  vs.  Tinybeans Group Limited

BBTV Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days BBTV Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, BBTV Holdings is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Tinybeans Group

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Tinybeans Group Limited are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, Tinybeans Group reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with BBTV Holdings and Tinybeans Group

The main advantage of trading using opposite BBTV Holdings and Tinybeans Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BBTV Holdings position performs unexpectedly, Tinybeans Group 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 Tinybeans Group will offset losses from the drop in Tinybeans Group's long position.

The idea behind BBTV Holdings and Tinybeans Group Limited 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.

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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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.