Correlation Between British Amer and Apiam Animal

Can any of the company-specific risk be diversified away by investing in both British Amer and Apiam Animal 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 British Amer and Apiam Animal into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Bailador Technology Investments and Apiam Animal Health, you can compare the effects of market volatilities on British Amer and Apiam Animal 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 British Amer with a short position of Apiam Animal. Check out your portfolio center. Please also check ongoing floating volatility patterns of British Amer and Apiam Animal.

Diversification Opportunities for British Amer and Apiam Animal

0.24

Correlation Coefficient

British Amer  Apiam Animal

Modest diversification

The 3 months correlation between British and Apiam is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Bailador Technology Investment and Apiam Animal Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apiam Animal Health and British Amer 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 Bailador Technology Investments are associated (or correlated) with Apiam Animal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apiam Animal Health has no effect on the direction of British Amer i.e., British Amer and Apiam Animal go up and down completely randomly.

Pair Corralation between British Amer and Apiam Animal

Assuming the 90 days trading horizon British Amer is expected to generate 2.44 times less return on investment than Apiam Animal. But when comparing it to its historical volatility, Bailador Technology Investments is 1.32 times less risky than Apiam Animal. It trades about 0.26 of its potential returns per unit of risk. Apiam Animal Health is currently generating about 0.47 of returns per unit of risk over similar time horizon. If you would invest  39.00  in Apiam Animal Health on April 2, 2025 and sell it today you would earn a total of  13.00  from holding Apiam Animal Health or generate 33.33% return on investment over 90 days.

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

Bailador Technology Investment  vs.  Apiam Animal Health

Bailador Technology

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Bailador Technology Investments are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain forward indicators, British Amer may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Apiam Animal Health

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Apiam Animal Health are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Apiam Animal unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with British Amer and Apiam Animal

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

The idea behind Bailador Technology Investments and Apiam Animal Health 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.