Correlation Between Pacteo Actions and BGF Global
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By analyzing existing cross correlation between Pacteo Actions Europe and BGF Global Allocation, you can compare the effects of market volatilities on Pacteo Actions and BGF Global 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 Pacteo Actions with a short position of BGF Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pacteo Actions and BGF Global.
Diversification Opportunities for Pacteo Actions and BGF Global
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pacteo and BGF is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Pacteo Actions Europe and BGF Global Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BGF Global Allocation and Pacteo Actions 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 Pacteo Actions Europe are associated (or correlated) with BGF Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BGF Global Allocation has no effect on the direction of Pacteo Actions i.e., Pacteo Actions and BGF Global go up and down completely randomly.
Pair Corralation between Pacteo Actions and BGF Global
Assuming the 90 days trading horizon Pacteo Actions is expected to generate 1.24 times less return on investment than BGF Global. But when comparing it to its historical volatility, Pacteo Actions Europe is 1.03 times less risky than BGF Global. It trades about 0.06 of its potential returns per unit of risk. BGF Global Allocation is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 6,830 in BGF Global Allocation on September 14, 2024 and sell it today you would earn a total of 892.00 from holding BGF Global Allocation or generate 13.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 41.95% |
| Values | Daily Returns |
Pacteo Actions Europe vs. BGF Global Allocation
Performance |
| Timeline |
| Pacteo Actions Europe |
| BGF Global Allocation |
Pacteo Actions and BGF Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pacteo Actions and BGF Global
The main advantage of trading using opposite Pacteo Actions and BGF Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pacteo Actions position performs unexpectedly, BGF Global 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 BGF Global will offset losses from the drop in BGF Global's long position.| Pacteo Actions vs. Esfera Robotics R | Pacteo Actions vs. R co Valor F | Pacteo Actions vs. CM AM Monplus NE | Pacteo Actions vs. IE00B0H4TS55 |
| BGF Global vs. BGF World Gold | BGF Global vs. BGF Global Allocation | BGF Global vs. BGF Euro Markets | BGF Global vs. BGF World Gold |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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