Correlation Between CI Group and BGT Public
Can any of the company-specific risk be diversified away by investing in both CI Group and BGT Public 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 CI Group and BGT Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CI Group Public and BGT Public, you can compare the effects of market volatilities on CI Group and BGT Public 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 CI Group with a short position of BGT Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI Group and BGT Public.
Diversification Opportunities for CI Group and BGT Public
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between CIG and BGT is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding CI Group Public and BGT Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BGT Public and CI 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 CI Group Public are associated (or correlated) with BGT Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BGT Public has no effect on the direction of CI Group i.e., CI Group and BGT Public go up and down completely randomly.
Pair Corralation between CI Group and BGT Public
Assuming the 90 days trading horizon CI Group Public is expected to generate 5.48 times more return on investment than BGT Public. However, CI Group is 5.48 times more volatile than BGT Public. It trades about 0.06 of its potential returns per unit of risk. BGT Public is currently generating about -0.17 per unit of risk. If you would invest 5.00 in CI Group Public on September 1, 2024 and sell it today you would earn a total of 0.00 from holding CI Group Public or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
CI Group Public vs. BGT Public
Performance |
| Timeline |
| CI Group Public |
| BGT Public |
CI Group and BGT Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CI Group and BGT Public
The main advantage of trading using opposite CI Group and BGT Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI Group position performs unexpectedly, BGT Public 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 BGT Public will offset losses from the drop in BGT Public's long position.| CI Group vs. ASIA Capital Group | CI Group vs. Cho Thavee Public | CI Group vs. CMO Public | CI Group vs. CPR Gomu Industrial |
| BGT Public vs. Cho Thavee Public | BGT Public vs. G Capital Public | BGT Public vs. CI Group Public | BGT Public vs. ASIA Capital 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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