Correlation Between Bts Tactical and Global Diversified

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

By analyzing existing cross correlation between Bts Tactical Fixed and Global Diversified Income, you can compare the effects of market volatilities on Bts Tactical and Global Diversified 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 Bts Tactical with a short position of Global Diversified. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bts Tactical and Global Diversified.

Diversification Opportunities for Bts Tactical and Global Diversified

0.96

Correlation Coefficient

Bts Tactical  Global Diversified

Almost no diversification

The 3 months correlation between Bts and Global is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Bts Tactical Fixed and Global Diversified Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Diversified Income and Bts Tactical 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 Bts Tactical Fixed are associated (or correlated) with Global Diversified. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Diversified Income has no effect on the direction of Bts Tactical i.e., Bts Tactical and Global Diversified go up and down completely randomly.

Pair Corralation between Bts Tactical and Global Diversified

Assuming the 90 days horizon Bts Tactical Fixed is expected to generate 1.4 times more return on investment than Global Diversified. However, Bts Tactical is 1.4 times more volatile than Global Diversified Income. It trades about 0.16 of its potential returns per unit of risk. Global Diversified Income is currently generating about 0.21 per unit of risk. If you would invest  749.00  in Bts Tactical Fixed on May 4, 2025 and sell it today you would earn a total of  17.00  from holding Bts Tactical Fixed or generate 2.27% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Bts Tactical Fixed  vs.  Global Diversified Income

Bts Tactical Fixed

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Bts Tactical Fixed are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Bts Tactical is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Global Diversified Income

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Global Diversified Income are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Global Diversified is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Bts Tactical and Global Diversified

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

The idea behind Bts Tactical Fixed and Global Diversified Income 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.