Correlation Between Becle SA and Vodka Brands

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Can any of the company-specific risk be diversified away by investing in both Becle SA and Vodka Brands 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 Becle SA and Vodka Brands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Becle SA de and Vodka Brands Corp, you can compare the effects of market volatilities on Becle SA and Vodka Brands 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 Becle SA with a short position of Vodka Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Becle SA and Vodka Brands.

Diversification Opportunities for Becle SA and Vodka Brands

BecleVodkaDiversified AwayBecleVodkaDiversified Away100%
-0.6
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Becle and Vodka is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Becle SA de and Vodka Brands Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vodka Brands Corp and Becle SA 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 Becle SA de are associated (or correlated) with Vodka Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vodka Brands Corp has no effect on the direction of Becle SA i.e., Becle SA and Vodka Brands go up and down completely randomly.

Pair Corralation between Becle SA and Vodka Brands

Assuming the 90 days horizon Becle SA de is expected to under-perform the Vodka Brands. But the pink sheet apears to be less risky and, when comparing its historical volatility, Becle SA de is 1.22 times less risky than Vodka Brands. The pink sheet trades about -0.15 of its potential returns per unit of risk. The Vodka Brands Corp is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  94.00  in Vodka Brands Corp on October 15, 2024 and sell it today you would earn a total of  36.00  from holding Vodka Brands Corp or generate 38.3% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy95.31%
ValuesDaily Returns

Becle SA de  vs.  Vodka Brands Corp

 Performance 
JavaScript chart by amCharts 3.21.15OctNovDec -30-25-20-15-10-50
JavaScript chart by amCharts 3.21.15BCCLF VDKB
       Timeline  
Becle SA de 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Becle SA de has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's essential indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan1.11.21.31.41.5
Vodka Brands Corp 

Risk-Adjusted Performance

11 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Vodka Brands Corp are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak forward-looking signals, Vodka Brands sustained solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan0.850.90.9511.051.11.151.21.251.3

Becle SA and Vodka Brands Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-5.83-4.36-2.9-1.440.01.192.43.614.82 0.0200.0250.0300.035
JavaScript chart by amCharts 3.21.15BCCLF VDKB
       Returns  

Pair Trading with Becle SA and Vodka Brands

The main advantage of trading using opposite Becle SA and Vodka Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Becle SA position performs unexpectedly, Vodka Brands 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 Vodka Brands will offset losses from the drop in Vodka Brands' long position.
The idea behind Becle SA de and Vodka Brands Corp 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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