Correlation Between Trustcash Holdings and BHPA

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

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

Diversification Opportunities for Trustcash Holdings and BHPA

0.0

Correlation Coefficient

Trustcash Holdings  BHPA

Pay attention - limited upside

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

Pair Corralation between Trustcash Holdings and BHPA

If you would invest  0.30  in BHPA Inc on December 29, 2024 and sell it today you would earn a total of  0.00  from holding BHPA Inc or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.36%
Values	Daily Returns

Trustcash Holdings  vs.  BHPA Inc

Trustcash Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Trustcash Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong technical indicators, Trustcash Holdings is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

BHPA Inc

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in BHPA Inc are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unsteady basic indicators, BHPA sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Trustcash Holdings and BHPA

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

The idea behind Trustcash Holdings and BHPA Inc 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.