Correlation Between FDG Electric and BCB Bancorp
Can any of the company-specific risk be diversified away by investing in both FDG Electric and BCB Bancorp 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 FDG Electric and BCB Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FDG Electric Vehicles and BCB Bancorp, you can compare the effects of market volatilities on FDG Electric and BCB Bancorp 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 FDG Electric with a short position of BCB Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of FDG Electric and BCB Bancorp.
Diversification Opportunities for FDG Electric and BCB Bancorp
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FDG and BCB is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FDG Electric Vehicles and BCB Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BCB Bancorp and FDG Electric 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 FDG Electric Vehicles are associated (or correlated) with BCB Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BCB Bancorp has no effect on the direction of FDG Electric i.e., FDG Electric and BCB Bancorp go up and down completely randomly.
Pair Corralation between FDG Electric and BCB Bancorp
If you would invest 1,198 in BCB Bancorp on September 1, 2024 and sell it today you would earn a total of 129.00 from holding BCB Bancorp or generate 10.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
FDG Electric Vehicles vs. BCB Bancorp
Performance |
| Timeline |
| FDG Electric Vehicles |
| BCB Bancorp |
FDG Electric and BCB Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FDG Electric and BCB Bancorp
The main advantage of trading using opposite FDG Electric and BCB Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FDG Electric position performs unexpectedly, BCB Bancorp 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 BCB Bancorp will offset losses from the drop in BCB Bancorp's long position.| FDG Electric vs. Allison Transmission Holdings | FDG Electric vs. Luminar Technologies | FDG Electric vs. Quantumscape Corp | FDG Electric vs. Lear Corporation |
| BCB Bancorp vs. Provident Financial Services | BCB Bancorp vs. First Mid Illinois | BCB Bancorp vs. ConnectOne Bancorp | BCB Bancorp vs. Finward Bancorp |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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