Correlation Between Suburban Propane and Ballantyne Strong

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

By analyzing existing cross correlation between Suburban Propane Partners and Ballantyne Strong, you can compare the effects of market volatilities on Suburban Propane and Ballantyne Strong 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 Suburban Propane with a short position of Ballantyne Strong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suburban Propane and Ballantyne Strong.

Diversification Opportunities for Suburban Propane and Ballantyne Strong

0.0

Correlation Coefficient

Suburban Propane  Ballantyne Strong

Pay attention - limited upside

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

Pair Corralation between Suburban Propane and Ballantyne Strong

If you would invest  1,754  in Suburban Propane Partners on October 24, 2024 and sell it today you would earn a total of  241.00  from holding Suburban Propane Partners or generate 13.74% return on investment over 90 days.

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

Suburban Propane Partners  vs.  Ballantyne Strong

Suburban Propane Partners

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Suburban Propane Partners are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite fairly unfluctuating basic indicators, Suburban Propane may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Ballantyne Strong

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Suburban Propane and Ballantyne Strong

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

The idea behind Suburban Propane Partners and Ballantyne Strong 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.