Correlation Between Cboe UK and BH Macro
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By analyzing existing cross correlation between Cboe UK Consumer and BH Macro Limited, you can compare the effects of market volatilities on Cboe UK and BH Macro 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 Cboe UK with a short position of BH Macro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cboe UK and BH Macro.
Diversification Opportunities for Cboe UK and BH Macro
Poor diversification
The 3 months correlation between Cboe and BHMG is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Cboe UK Consumer and BH Macro Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BH Macro Limited and Cboe UK 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 Cboe UK Consumer are associated (or correlated) with BH Macro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BH Macro Limited has no effect on the direction of Cboe UK i.e., Cboe UK and BH Macro go up and down completely randomly.
Pair Corralation between Cboe UK and BH Macro
Assuming the 90 days trading horizon Cboe UK Consumer is expected to generate 0.79 times more return on investment than BH Macro. However, Cboe UK Consumer is 1.26 times less risky than BH Macro. It trades about 0.41 of its potential returns per unit of risk. BH Macro Limited is currently generating about 0.26 per unit of risk. If you would invest 2,958,388 in Cboe UK Consumer on August 29, 2024 and sell it today you would earn a total of 302,859 from holding Cboe UK Consumer or generate 10.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cboe UK Consumer vs. BH Macro Limited
Performance |
| Timeline |
Cboe UK and BH Macro Volatility Contrast
Predicted Return Density |
| Returns |
Cboe UK Consumer
Pair trading matchups for Cboe UK
BH Macro Limited
Pair trading matchups for BH Macro
Pair Trading with Cboe UK and BH Macro
The main advantage of trading using opposite Cboe UK and BH Macro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cboe UK position performs unexpectedly, BH Macro 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 BH Macro will offset losses from the drop in BH Macro's long position.| Cboe UK vs. Liberty Media Corp | Cboe UK vs. XLMedia PLC | Cboe UK vs. Scandinavian Tobacco Group | Cboe UK vs. Catena Media PLC |
| BH Macro vs. Fortune Brands Home | BH Macro vs. OneSavings Bank PLC | BH Macro vs. Pacific Horizon Investment | BH Macro vs. Cairn Homes PLC |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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