Correlation Between BCE and Wicket Gaming
Can any of the company-specific risk be diversified away by investing in both BCE and Wicket Gaming 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 Wicket Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BCE Inc and Wicket Gaming AB, you can compare the effects of market volatilities on BCE and Wicket Gaming 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 Wicket Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of BCE and Wicket Gaming.
Diversification Opportunities for BCE and Wicket Gaming
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BCE and Wicket is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BCE Inc and Wicket Gaming AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wicket Gaming AB 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 Wicket Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wicket Gaming AB has no effect on the direction of BCE i.e., BCE and Wicket Gaming go up and down completely randomly.
Pair Corralation between BCE and Wicket Gaming
Considering the 90-day investment horizon BCE Inc is expected to generate 0.28 times more return on investment than Wicket Gaming. However, BCE Inc is 3.51 times less risky than Wicket Gaming. It trades about -0.07 of its potential returns per unit of risk. Wicket Gaming AB is currently generating about -0.05 per unit of risk. If you would invest 4,011 in BCE Inc on August 30, 2024 and sell it today you would lose (1,309) from holding BCE Inc or give up 32.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.38% |
| Values | Daily Returns |
BCE Inc vs. Wicket Gaming AB
Performance |
| Timeline |
| BCE Inc |
| Wicket Gaming AB |
BCE and Wicket Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BCE and Wicket Gaming
The main advantage of trading using opposite BCE and Wicket Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BCE position performs unexpectedly, Wicket Gaming 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 Wicket Gaming will offset losses from the drop in Wicket Gaming's long position.The idea behind BCE Inc and Wicket Gaming AB pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Wicket Gaming vs. Playstudios | Wicket Gaming vs. Doubledown Interactive Co | Wicket Gaming vs. Bragg Gaming Group | Wicket Gaming vs. Golden Matrix Group |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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