Correlation Between BC Craft and Earth Science

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

By analyzing existing cross correlation between BC Craft Supply and Earth Science Tech, you can compare the effects of market volatilities on BC Craft and Earth Science 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 BC Craft with a short position of Earth Science. Check out your portfolio center. Please also check ongoing floating volatility patterns of BC Craft and Earth Science.

Diversification Opportunities for BC Craft and Earth Science

0.0

Correlation Coefficient

BC Craft  Earth Science

Pay attention - limited upside

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

Pair Corralation between BC Craft and Earth Science

If you would invest  18.00  in Earth Science Tech on April 25, 2025 and sell it today you would earn a total of  2.00  from holding Earth Science Tech or generate 11.11% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	96.83%
Values	Daily Returns

BC Craft Supply  vs.  Earth Science Tech

BC Craft Supply

Risk-Adjusted Performance

Very Weak

Over the last 90 days BC Craft Supply has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, BC Craft is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Earth Science Tech

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Earth Science Tech are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, Earth Science unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with BC Craft and Earth Science

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

The idea behind BC Craft Supply and Earth Science Tech 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.