Correlation Between BHP Group and Beston Global
Can any of the company-specific risk be diversified away by investing in both BHP Group and Beston Global 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 BHP Group and Beston Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BHP Group Limited and Beston Global Food, you can compare the effects of market volatilities on BHP Group and Beston Global 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 BHP Group with a short position of Beston Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of BHP Group and Beston Global.
Diversification Opportunities for BHP Group and Beston Global
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BHP and Beston is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BHP Group Limited and Beston Global Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beston Global Food and BHP Group 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 BHP Group Limited are associated (or correlated) with Beston Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beston Global Food has no effect on the direction of BHP Group i.e., BHP Group and Beston Global go up and down completely randomly.
Pair Corralation between BHP Group and Beston Global
Assuming the 90 days trading horizon BHP Group is expected to generate 113.73 times less return on investment than Beston Global. But when comparing it to its historical volatility, BHP Group Limited is 8.07 times less risky than Beston Global. It trades about 0.0 of its potential returns per unit of risk. Beston Global Food is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 2.50 in Beston Global Food on August 29, 2024 and sell it today you would lose (2.20) from holding Beston Global Food or give up 88.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
BHP Group Limited vs. Beston Global Food
Performance |
| Timeline |
| BHP Group Limited |
| Beston Global Food |
BHP Group and Beston Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BHP Group and Beston Global
The main advantage of trading using opposite BHP Group and Beston Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BHP Group position performs unexpectedly, Beston Global 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 Beston Global will offset losses from the drop in Beston Global's long position.| BHP Group vs. Singular Health Group | BHP Group vs. Ras Technology Holdings | BHP Group vs. Apiam Animal Health | BHP Group vs. Richmond Vanadium Technology |
| Beston Global vs. PVW Resources | Beston Global vs. Woolworths | Beston Global vs. Wesfarmers | Beston Global vs. Coles 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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |