Correlation Between BCE and Kansai Electric
Can any of the company-specific risk be diversified away by investing in both BCE and Kansai Electric 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 BCE and Kansai Electric into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BCE Inc and The Kansai Electric, you can compare the effects of market volatilities on BCE and Kansai Electric 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 BCE with a short position of Kansai Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of BCE and Kansai Electric.
Diversification Opportunities for BCE and Kansai Electric
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BCE and Kansai is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BCE Inc and The Kansai Electric in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kansai Electric and BCE 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 BCE Inc are associated (or correlated) with Kansai Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kansai Electric has no effect on the direction of BCE i.e., BCE and Kansai Electric go up and down completely randomly.
Pair Corralation between BCE and Kansai Electric
If you would invest 2,382 in BCE Inc on November 4, 2024 and sell it today you would lose (3.00) from holding BCE Inc or give up 0.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
BCE Inc vs. The Kansai Electric
Performance |
| Timeline |
| BCE Inc |
| Kansai Electric |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
BCE and Kansai Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BCE and Kansai Electric
The main advantage of trading using opposite BCE and Kansai Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BCE position performs unexpectedly, Kansai Electric 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 Kansai Electric will offset losses from the drop in Kansai Electric's long position.| BCE vs. Rogers Communications | BCE vs. America Movil SAB | BCE vs. Telus Corp | BCE vs. Telefonica Brasil SA |
| Kansai Electric vs. NL Industries | Kansai Electric vs. FactSet Research Systems | Kansai Electric vs. Albemarle | Kansai Electric vs. Sealed Air |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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