Correlation Between Bri-Chem Corp and Mccoy Global
Can any of the company-specific risk be diversified away by investing in both Bri-Chem Corp and Mccoy 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 Bri-Chem Corp and Mccoy Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bri Chem Corp and Mccoy Global, you can compare the effects of market volatilities on Bri-Chem Corp and Mccoy 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 Bri-Chem Corp with a short position of Mccoy Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bri-Chem Corp and Mccoy Global.
Diversification Opportunities for Bri-Chem Corp and Mccoy Global
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bri-Chem and Mccoy is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Bri Chem Corp and Mccoy Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mccoy Global and Bri-Chem Corp 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 Bri Chem Corp are associated (or correlated) with Mccoy Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mccoy Global has no effect on the direction of Bri-Chem Corp i.e., Bri-Chem Corp and Mccoy Global go up and down completely randomly.
Pair Corralation between Bri-Chem Corp and Mccoy Global
Assuming the 90 days horizon Bri Chem Corp is expected to generate 1.19 times more return on investment than Mccoy Global. However, Bri-Chem Corp is 1.19 times more volatile than Mccoy Global. It trades about 0.38 of its potential returns per unit of risk. Mccoy Global is currently generating about -0.25 per unit of risk. If you would invest 12.00 in Bri Chem Corp on August 27, 2024 and sell it today you would earn a total of 5.00 from holding Bri Chem Corp or generate 41.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bri Chem Corp vs. Mccoy Global
Performance |
| Timeline |
| Bri Chem Corp |
| Mccoy Global |
Bri-Chem Corp and Mccoy Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bri-Chem Corp and Mccoy Global
The main advantage of trading using opposite Bri-Chem Corp and Mccoy Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bri-Chem Corp position performs unexpectedly, Mccoy 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 Mccoy Global will offset losses from the drop in Mccoy Global's long position.| Bri-Chem Corp vs. Dawson Geophysical | Bri-Chem Corp vs. NCS Multistage Holdings | Bri-Chem Corp vs. NXT Energy Solutions | Bri-Chem Corp vs. Bristow Group |
| Mccoy Global vs. Petroleo Brasileiro Petrobras | Mccoy Global vs. Equinor ASA ADR | Mccoy Global vs. Eni SpA ADR | Mccoy Global vs. YPF Sociedad Anonima |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |