Correlation Between BGC and Arcelormittal
Can any of the company-specific risk be diversified away by investing in both BGC and Arcelormittal 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 BGC and Arcelormittal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BGC Group and Arcelormittal, you can compare the effects of market volatilities on BGC and Arcelormittal 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 BGC with a short position of Arcelormittal. Check out your portfolio center. Please also check ongoing floating volatility patterns of BGC and Arcelormittal.
Diversification Opportunities for BGC and Arcelormittal
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BGC and Arcelormittal is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding BGC Group and Arcelormittal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arcelormittal and BGC 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 BGC Group are associated (or correlated) with Arcelormittal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arcelormittal has no effect on the direction of BGC i.e., BGC and Arcelormittal go up and down completely randomly.
Pair Corralation between BGC and Arcelormittal
If you would invest 582.00 in BGC Group on August 26, 2024 and sell it today you would earn a total of 378.00 from holding BGC Group or generate 64.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.37% |
| Values | Daily Returns |
BGC Group vs. Arcelormittal
Performance |
| Timeline |
| BGC Group |
| Arcelormittal |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
BGC and Arcelormittal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BGC and Arcelormittal
The main advantage of trading using opposite BGC and Arcelormittal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BGC position performs unexpectedly, Arcelormittal 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 Arcelormittal will offset losses from the drop in Arcelormittal's long position.| BGC vs. Uber Technologies | BGC vs. Nuvalent | BGC vs. Centessa Pharmaceuticals PLC | BGC vs. Jutal Offshore Oil |
| Arcelormittal vs. Affiliated Managers Group | Arcelormittal vs. Maiden Holdings North | Arcelormittal vs. Credit Enhanced Corts | Arcelormittal vs. Affiliated Managers 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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