Correlation Between Bt Brands and NESNVX

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

By analyzing existing cross correlation between Bt Brands and NESNVX 43 01 OCT 32, you can compare the effects of market volatilities on Bt Brands and NESNVX 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 Brands with a short position of NESNVX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bt Brands and NESNVX.

Diversification Opportunities for Bt Brands and NESNVX

0.0

Correlation Coefficient

Bt Brands  NESNVX

Pay attention - limited upside

The 3 months correlation between BTBD and NESNVX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bt Brands and NESNVX 43 01 OCT 32 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NESNVX 43 01 and Bt Brands 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 Brands are associated (or correlated) with NESNVX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NESNVX 43 01 has no effect on the direction of Bt Brands i.e., Bt Brands and NESNVX go up and down completely randomly.

Pair Corralation between Bt Brands and NESNVX

Given the investment horizon of 90 days Bt Brands is expected to generate 4.5 times more return on investment than NESNVX. However, Bt Brands is 4.5 times more volatile than NESNVX 43 01 OCT 32. It trades about 0.15 of its potential returns per unit of risk. NESNVX 43 01 OCT 32 is currently generating about 0.25 per unit of risk. If you would invest  138.00  in Bt Brands on October 23, 2024 and sell it today you would earn a total of  20.00  from holding Bt Brands or generate 14.49% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	61.11%
Values	Daily Returns

Bt Brands  vs.  NESNVX 43 01 OCT 32

Bt Brands

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Bt Brands has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental drivers, Bt Brands is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

NESNVX 43 01

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in NESNVX 43 01 OCT 32 are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, NESNVX is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Bt Brands and NESNVX

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

The idea behind Bt Brands and NESNVX 43 01 OCT 32 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.