Correlation Between Birchtech Corp and Westshore Terminals
Can any of the company-specific risk be diversified away by investing in both Birchtech Corp and Westshore Terminals 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 Birchtech Corp and Westshore Terminals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Birchtech Corp and Westshore Terminals Investment, you can compare the effects of market volatilities on Birchtech Corp and Westshore Terminals 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 Birchtech Corp with a short position of Westshore Terminals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Birchtech Corp and Westshore Terminals.
Diversification Opportunities for Birchtech Corp and Westshore Terminals
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Birchtech and Westshore is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Birchtech Corp and Westshore Terminals Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Westshore Terminals and Birchtech Corp 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 Birchtech Corp are associated (or correlated) with Westshore Terminals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Westshore Terminals has no effect on the direction of Birchtech Corp i.e., Birchtech Corp and Westshore Terminals go up and down completely randomly.
Pair Corralation between Birchtech Corp and Westshore Terminals
Assuming the 90 days trading horizon Birchtech Corp is expected to generate 5.03 times more return on investment than Westshore Terminals. However, Birchtech Corp is 5.03 times more volatile than Westshore Terminals Investment. It trades about 0.09 of its potential returns per unit of risk. Westshore Terminals Investment is currently generating about 0.04 per unit of risk. If you would invest 91.00 in Birchtech Corp on August 14, 2025 and sell it today you would earn a total of 14.00 from holding Birchtech Corp or generate 15.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Birchtech Corp vs. Westshore Terminals Investment
Performance |
| Timeline |
| Birchtech Corp |
| Westshore Terminals |
Birchtech Corp and Westshore Terminals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Birchtech Corp and Westshore Terminals
The main advantage of trading using opposite Birchtech Corp and Westshore Terminals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Birchtech Corp position performs unexpectedly, Westshore Terminals 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 Westshore Terminals will offset losses from the drop in Westshore Terminals' long position.| Birchtech Corp vs. First National Financial | Birchtech Corp vs. Arizona Metals Corp | Birchtech Corp vs. Enerev5 Metals | Birchtech Corp vs. Sun Life Financial |
| Westshore Terminals vs. Bird Construction | Westshore Terminals vs. Savaria | Westshore Terminals vs. Transcontinental | Westshore Terminals vs. Ballard Power Systems |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |