Correlation Between CurrentC Power and BHPA
Can any of the company-specific risk be diversified away by investing in both CurrentC Power and BHPA 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 CurrentC Power and BHPA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CurrentC Power and BHPA Inc, you can compare the effects of market volatilities on CurrentC Power and BHPA 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 CurrentC Power with a short position of BHPA. Check out your portfolio center. Please also check ongoing floating volatility patterns of CurrentC Power and BHPA.
Diversification Opportunities for CurrentC Power and BHPA
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between CurrentC and BHPA is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding CurrentC Power and BHPA Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BHPA Inc and CurrentC Power 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 CurrentC Power are associated (or correlated) with BHPA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BHPA Inc has no effect on the direction of CurrentC Power i.e., CurrentC Power and BHPA go up and down completely randomly.
Pair Corralation between CurrentC Power and BHPA
Given the investment horizon of 90 days CurrentC Power is expected to generate 1.56 times more return on investment than BHPA. However, CurrentC Power is 1.56 times more volatile than BHPA Inc. It trades about 0.21 of its potential returns per unit of risk. BHPA Inc is currently generating about 0.2 per unit of risk. If you would invest 12.00 in CurrentC Power on August 24, 2024 and sell it today you would earn a total of 11.00 from holding CurrentC Power or generate 91.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CurrentC Power vs. BHPA Inc
Performance |
| Timeline |
| CurrentC Power |
| BHPA Inc |
CurrentC Power and BHPA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CurrentC Power and BHPA
The main advantage of trading using opposite CurrentC Power and BHPA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CurrentC Power position performs unexpectedly, BHPA 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 BHPA will offset losses from the drop in BHPA's long position.| CurrentC Power vs. Zhihu Inc ADR | CurrentC Power vs. Postal Realty Trust | CurrentC Power vs. Nike Inc | CurrentC Power vs. Eastern Co |
| BHPA vs. Transportadora de Gas | BHPA vs. PGE Corp | BHPA vs. WEC Energy Group | BHPA vs. Willscot Mobile Mini |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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