Correlation Between BCE and Siriuspoint
Can any of the company-specific risk be diversified away by investing in both BCE and Siriuspoint 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 Siriuspoint into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BCE Inc and Siriuspoint, you can compare the effects of market volatilities on BCE and Siriuspoint 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 Siriuspoint. Check out your portfolio center. Please also check ongoing floating volatility patterns of BCE and Siriuspoint.
Diversification Opportunities for BCE and Siriuspoint
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BCE and Siriuspoint is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding BCE Inc and Siriuspoint in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siriuspoint 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 Siriuspoint. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siriuspoint has no effect on the direction of BCE i.e., BCE and Siriuspoint go up and down completely randomly.
Pair Corralation between BCE and Siriuspoint
Considering the 90-day investment horizon BCE Inc is expected to under-perform the Siriuspoint. But the stock apears to be less risky and, when comparing its historical volatility, BCE Inc is 1.4 times less risky than Siriuspoint. The stock trades about -0.22 of its potential returns per unit of risk. The Siriuspoint is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 1,450 in Siriuspoint on January 12, 2025 and sell it today you would earn a total of 128.00 from holding Siriuspoint or generate 8.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BCE Inc vs. Siriuspoint
Performance |
| Timeline |
| BCE Inc |
| Siriuspoint |
BCE and Siriuspoint Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BCE and Siriuspoint
The main advantage of trading using opposite BCE and Siriuspoint positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BCE position performs unexpectedly, Siriuspoint 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 Siriuspoint will offset losses from the drop in Siriuspoint's long position.| BCE vs. Rogers Communications | BCE vs. America Movil SAB | BCE vs. Telus Corp | BCE vs. Telefonica Brasil SA |
| Siriuspoint vs. Maiden Holdings | Siriuspoint vs. Reinsurance Group of | Siriuspoint vs. Oxbridge Re Holdings | Siriuspoint vs. Greenlight Capital Re |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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