Correlation Between United States and BBGI SICAV
Can any of the company-specific risk be diversified away by investing in both United States and BBGI SICAV 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 United States and BBGI SICAV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United States Steel and BBGI SICAV SA, you can compare the effects of market volatilities on United States and BBGI SICAV 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 United States with a short position of BBGI SICAV. Check out your portfolio center. Please also check ongoing floating volatility patterns of United States and BBGI SICAV.
Diversification Opportunities for United States and BBGI SICAV
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between United and BBGI is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding United States Steel and BBGI SICAV SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BBGI SICAV SA and United States 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 United States Steel are associated (or correlated) with BBGI SICAV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BBGI SICAV SA has no effect on the direction of United States i.e., United States and BBGI SICAV go up and down completely randomly.
Pair Corralation between United States and BBGI SICAV
Assuming the 90 days trading horizon United States Steel is expected to generate 2.57 times more return on investment than BBGI SICAV. However, United States is 2.57 times more volatile than BBGI SICAV SA. It trades about 0.03 of its potential returns per unit of risk. BBGI SICAV SA is currently generating about 0.03 per unit of risk. If you would invest 3,147 in United States Steel on September 12, 2024 and sell it today you would earn a total of 626.00 from holding United States Steel or generate 19.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.8% |
| Values | Daily Returns |
United States Steel vs. BBGI SICAV SA
Performance |
| Timeline |
| United States Steel |
| BBGI SICAV SA |
United States and BBGI SICAV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United States and BBGI SICAV
The main advantage of trading using opposite United States and BBGI SICAV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United States position performs unexpectedly, BBGI SICAV 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 BBGI SICAV will offset losses from the drop in BBGI SICAV's long position.| United States vs. Hong Kong Land | United States vs. Neometals | United States vs. Coor Service Management | United States vs. Fidelity Sustainable USD |
| BBGI SICAV vs. Bankers Investment Trust | BBGI SICAV vs. United States Steel | BBGI SICAV vs. New Residential Investment | BBGI SICAV vs. Lowland Investment Co |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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