Correlation Between BGF Retail and Cuckoo Homesys
Can any of the company-specific risk be diversified away by investing in both BGF Retail and Cuckoo Homesys 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 Cuckoo Homesys 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 Cuckoo Homesys Co, you can compare the effects of market volatilities on BGF Retail and Cuckoo Homesys 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 Cuckoo Homesys. Check out your portfolio center. Please also check ongoing floating volatility patterns of BGF Retail and Cuckoo Homesys.
Diversification Opportunities for BGF Retail and Cuckoo Homesys
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between BGF and Cuckoo is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding BGF Retail Co and Cuckoo Homesys Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cuckoo Homesys 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 Cuckoo Homesys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cuckoo Homesys has no effect on the direction of BGF Retail i.e., BGF Retail and Cuckoo Homesys go up and down completely randomly.
Pair Corralation between BGF Retail and Cuckoo Homesys
Assuming the 90 days trading horizon BGF Retail Co is expected to generate 1.08 times more return on investment than Cuckoo Homesys. However, BGF Retail is 1.08 times more volatile than Cuckoo Homesys Co. It trades about -0.07 of its potential returns per unit of risk. Cuckoo Homesys Co is currently generating about -0.23 per unit of risk. If you would invest 10,770,000 in BGF Retail Co on October 24, 2024 and sell it today you would lose (210,000) from holding BGF Retail Co or give up 1.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
BGF Retail Co vs. Cuckoo Homesys Co
Performance |
| Timeline |
| BGF Retail |
| Cuckoo Homesys |
BGF Retail and Cuckoo Homesys Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BGF Retail and Cuckoo Homesys
The main advantage of trading using opposite BGF Retail and Cuckoo Homesys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BGF Retail position performs unexpectedly, Cuckoo Homesys 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 Cuckoo Homesys will offset losses from the drop in Cuckoo Homesys' long position.| BGF Retail vs. Lotte Non Life Insurance | BGF Retail vs. Asiana Airlines | BGF Retail vs. Korean Reinsurance Co | BGF Retail vs. Moadata Co |
| Cuckoo Homesys vs. Busan Industrial Co | Cuckoo Homesys vs. Busan Ind | Cuckoo Homesys vs. Mirae Asset Daewoo | Cuckoo Homesys vs. Shinhan WTI Futures |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |