Correlation Between BT Group and Cincinnati Bell
Can any of the company-specific risk be diversified away by investing in both BT Group and Cincinnati Bell 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 Group and Cincinnati Bell into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BT Group Plc and Cincinnati Bell, you can compare the effects of market volatilities on BT Group and Cincinnati Bell 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 Group with a short position of Cincinnati Bell. Check out your portfolio center. Please also check ongoing floating volatility patterns of BT Group and Cincinnati Bell.
Diversification Opportunities for BT Group and Cincinnati Bell
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BT Group and Cincinnati is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BT Group Plc and Cincinnati Bell in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cincinnati Bell and BT Group 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 Group Plc are associated (or correlated) with Cincinnati Bell. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cincinnati Bell has no effect on the direction of BT Group i.e., BT Group and Cincinnati Bell go up and down completely randomly.
Pair Corralation between BT Group and Cincinnati Bell
If you would invest (100.00) in Cincinnati Bell on January 26, 2024 and sell it today you would earn a total of 100.00 from holding Cincinnati Bell or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BT Group Plc vs. Cincinnati Bell
Performance |
| Timeline |
| BT Group Plc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Cincinnati Bell |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
BT Group and Cincinnati Bell Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BT Group and Cincinnati Bell
The main advantage of trading using opposite BT Group and Cincinnati Bell positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BT Group position performs unexpectedly, Cincinnati Bell 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 Cincinnati Bell will offset losses from the drop in Cincinnati Bell's long position.| BT Group vs. Palomar Holdings | BT Group vs. Flexible Solutions International | BT Group vs. Employers Holdings | BT Group vs. Aegon NV ADR |
| Cincinnati Bell vs. JBG SMITH Properties | Cincinnati Bell vs. Smith Douglas Homes | Cincinnati Bell vs. Hooker Furniture | Cincinnati Bell vs. US Silica Holdings |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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