Correlation Between BTTR Old and Planting Hope

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

By analyzing existing cross correlation between BTTR Old and The Planting Hope, you can compare the effects of market volatilities on BTTR Old and Planting Hope 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 BTTR Old with a short position of Planting Hope. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTTR Old and Planting Hope.

Diversification Opportunities for BTTR Old and Planting Hope

0.0

Correlation Coefficient

BTTR Old  Planting Hope

Pay attention - limited upside

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

Pair Corralation between BTTR Old and Planting Hope

If you would invest  1.52  in The Planting Hope on May 5, 2025 and sell it today you would earn a total of  0.00  from holding The Planting Hope or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.54%
Values	Daily Returns

BTTR Old  vs.  The Planting Hope

BTTR Old

Risk-Adjusted Performance

Very Weak

Over the last 90 days BTTR Old has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, BTTR Old is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Planting Hope

Risk-Adjusted Performance

Very Weak

Over the last 90 days The Planting Hope has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable forward-looking signals, Planting Hope is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with BTTR Old and Planting Hope

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

The idea behind BTTR Old and The Planting Hope 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.