Correlation Between Cgrowth Capital and BPI Energy
Can any of the company-specific risk be diversified away by investing in both Cgrowth Capital and BPI Energy 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 Cgrowth Capital and BPI Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cgrowth Capital and BPI Energy Holdings, you can compare the effects of market volatilities on Cgrowth Capital and BPI Energy 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 Cgrowth Capital with a short position of BPI Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cgrowth Capital and BPI Energy.
Diversification Opportunities for Cgrowth Capital and BPI Energy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cgrowth and BPI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cgrowth Capital and BPI Energy Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BPI Energy Holdings and Cgrowth Capital 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 Cgrowth Capital are associated (or correlated) with BPI Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BPI Energy Holdings has no effect on the direction of Cgrowth Capital i.e., Cgrowth Capital and BPI Energy go up and down completely randomly.
Pair Corralation between Cgrowth Capital and BPI Energy
If you would invest 0.20 in Cgrowth Capital on September 12, 2024 and sell it today you would earn a total of 0.20 from holding Cgrowth Capital or generate 100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.59% |
| Values | Daily Returns |
Cgrowth Capital vs. BPI Energy Holdings
Performance |
| Timeline |
| Cgrowth Capital |
| BPI Energy Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Cgrowth Capital and BPI Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cgrowth Capital and BPI Energy
The main advantage of trading using opposite Cgrowth Capital and BPI Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cgrowth Capital position performs unexpectedly, BPI Energy 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 BPI Energy will offset losses from the drop in BPI Energy's long position.| Cgrowth Capital vs. Sound Energy plc | Cgrowth Capital vs. Energy Revenue Amer | Cgrowth Capital vs. Prairie Provident Resources | Cgrowth Capital vs. MMEX Resources Corp |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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