Correlation Between BSP Financial and CogState
Can any of the company-specific risk be diversified away by investing in both BSP Financial and CogState 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 BSP Financial and CogState into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BSP Financial Group and CogState, you can compare the effects of market volatilities on BSP Financial and CogState 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 BSP Financial with a short position of CogState. Check out your portfolio center. Please also check ongoing floating volatility patterns of BSP Financial and CogState.
Diversification Opportunities for BSP Financial and CogState
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between BSP and CogState is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding BSP Financial Group and CogState in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CogState and BSP Financial 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 BSP Financial Group are associated (or correlated) with CogState. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CogState has no effect on the direction of BSP Financial i.e., BSP Financial and CogState go up and down completely randomly.
Pair Corralation between BSP Financial and CogState
Assuming the 90 days trading horizon BSP Financial Group is expected to generate 0.61 times more return on investment than CogState. However, BSP Financial Group is 1.64 times less risky than CogState. It trades about 0.07 of its potential returns per unit of risk. CogState is currently generating about -0.01 per unit of risk. If you would invest 440.00 in BSP Financial Group on September 12, 2024 and sell it today you would earn a total of 205.00 from holding BSP Financial Group or generate 46.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BSP Financial Group vs. CogState
Performance |
| Timeline |
| BSP Financial Group |
| CogState |
BSP Financial and CogState Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BSP Financial and CogState
The main advantage of trading using opposite BSP Financial and CogState positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BSP Financial position performs unexpectedly, CogState 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 CogState will offset losses from the drop in CogState's long position.| BSP Financial vs. Retail Food Group | BSP Financial vs. Clime Investment Management | BSP Financial vs. Qbe Insurance Group | BSP Financial vs. Dicker Data |
| CogState vs. BSP Financial Group | CogState vs. MA Financial Group | CogState vs. Finexia Financial Group | CogState vs. My Foodie Box |
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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