Correlation Between British American and Hempacco Co,

Can any of the company-specific risk be diversified away by investing in both British American and Hempacco Co, 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 British American and Hempacco Co, into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between British American Tobacco and Hempacco Co,, you can compare the effects of market volatilities on British American and Hempacco Co, 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 British American with a short position of Hempacco Co,. Check out your portfolio center. Please also check ongoing floating volatility patterns of British American and Hempacco Co,.

Diversification Opportunities for British American and Hempacco Co,

0.0

Correlation Coefficient

British American  Hempacco Co,

Pay attention - limited upside

The 3 months correlation between British and Hempacco is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding British American Tobacco and Hempacco Co, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hempacco Co, and British American 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 British American Tobacco are associated (or correlated) with Hempacco Co,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hempacco Co, has no effect on the direction of British American i.e., British American and Hempacco Co, go up and down completely randomly.

Pair Corralation between British American and Hempacco Co,

If you would invest  3,477  in British American Tobacco on December 30, 2024 and sell it today you would earn a total of  515.00  from holding British American Tobacco or generate 14.81% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

British American Tobacco  vs.  Hempacco Co,

British American Tobacco

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in British American Tobacco are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak technical and fundamental indicators, British American reported solid returns over the last few months and may actually be approaching a breakup point.

Hempacco Co,

Risk-Adjusted Performance

Very Weak

Over the last 90 days Hempacco Co, has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy fundamental indicators, Hempacco Co, is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with British American and Hempacco Co,

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

The idea behind British American Tobacco and Hempacco Co, 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.

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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.