Correlation Between Expedia and Ballantyne Strong
Can any of the company-specific risk be diversified away by investing in both Expedia 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 Expedia and Ballantyne Strong into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Expedia Group and Ballantyne Strong, you can compare the effects of market volatilities on Expedia 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 Expedia with a short position of Ballantyne Strong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Expedia and Ballantyne Strong.
Diversification Opportunities for Expedia and Ballantyne Strong
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Expedia and Ballantyne is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Expedia Group and Ballantyne Strong in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ballantyne Strong and Expedia 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 Expedia Group 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 Expedia i.e., Expedia and Ballantyne Strong go up and down completely randomly.
Pair Corralation between Expedia and Ballantyne Strong
If you would invest 265.00 in Ballantyne Strong on January 18, 2024 and sell it today you would earn a total of 0.00 from holding Ballantyne Strong or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 2.44% |
| Values | Daily Returns |
Expedia Group vs. Ballantyne Strong
Performance |
| Timeline |
| Expedia Group |
| Ballantyne Strong |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Expedia and Ballantyne Strong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Expedia and Ballantyne Strong
The main advantage of trading using opposite Expedia and Ballantyne Strong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Expedia 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 Expedia Group 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.| Ballantyne Strong vs. Western Copper and | Ballantyne Strong vs. Jeld Wen Holding | Ballantyne Strong vs. Summit Materials | Ballantyne Strong vs. Keurig Dr Pepper |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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