Correlation Between BGF Retail and INtRON Biotechnology
Can any of the company-specific risk be diversified away by investing in both BGF Retail and INtRON Biotechnology 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 BGF Retail and INtRON Biotechnology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BGF Retail Co and iNtRON Biotechnology, you can compare the effects of market volatilities on BGF Retail and INtRON Biotechnology 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 BGF Retail with a short position of INtRON Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of BGF Retail and INtRON Biotechnology.
Diversification Opportunities for BGF Retail and INtRON Biotechnology
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between BGF and INtRON is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding BGF Retail Co and iNtRON Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iNtRON Biotechnology and BGF Retail 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 BGF Retail Co are associated (or correlated) with INtRON Biotechnology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iNtRON Biotechnology has no effect on the direction of BGF Retail i.e., BGF Retail and INtRON Biotechnology go up and down completely randomly.
Pair Corralation between BGF Retail and INtRON Biotechnology
Assuming the 90 days trading horizon BGF Retail Co is expected to under-perform the INtRON Biotechnology. But the stock apears to be less risky and, when comparing its historical volatility, BGF Retail Co is 2.0 times less risky than INtRON Biotechnology. The stock trades about -0.06 of its potential returns per unit of risk. The iNtRON Biotechnology is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 790,000 in iNtRON Biotechnology on August 29, 2024 and sell it today you would lose (227,000) from holding iNtRON Biotechnology or give up 28.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BGF Retail Co vs. iNtRON Biotechnology
Performance |
| Timeline |
| BGF Retail |
| iNtRON Biotechnology |
BGF Retail and INtRON Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BGF Retail and INtRON Biotechnology
The main advantage of trading using opposite BGF Retail and INtRON Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BGF Retail position performs unexpectedly, INtRON Biotechnology 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 INtRON Biotechnology will offset losses from the drop in INtRON Biotechnology's long position.| BGF Retail vs. AptaBio Therapeutics | BGF Retail vs. Daewoo SBI SPAC | BGF Retail vs. Dream Security co | BGF Retail vs. Microfriend |
| INtRON Biotechnology vs. Medy Tox | INtRON Biotechnology vs. Busan Industrial Co | INtRON Biotechnology vs. Busan Ind | INtRON Biotechnology vs. Mirae Asset Daewoo |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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