Correlation Between BGF Euro and Impact ISR
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By analyzing existing cross correlation between BGF Euro Markets and Impact ISR Performance, you can compare the effects of market volatilities on BGF Euro and Impact ISR 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 BGF Euro with a short position of Impact ISR. Check out your portfolio center. Please also check ongoing floating volatility patterns of BGF Euro and Impact ISR.
Diversification Opportunities for BGF Euro and Impact ISR
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BGF and Impact is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding BGF Euro Markets and Impact ISR Performance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Impact ISR Performance and BGF Euro 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 BGF Euro Markets are associated (or correlated) with Impact ISR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Impact ISR Performance has no effect on the direction of BGF Euro i.e., BGF Euro and Impact ISR go up and down completely randomly.
Pair Corralation between BGF Euro and Impact ISR
Assuming the 90 days trading horizon BGF Euro Markets is expected to generate 0.86 times more return on investment than Impact ISR. However, BGF Euro Markets is 1.17 times less risky than Impact ISR. It trades about 0.18 of its potential returns per unit of risk. Impact ISR Performance is currently generating about -0.09 per unit of risk. If you would invest 4,504 in BGF Euro Markets on October 12, 2024 and sell it today you would earn a total of 92.00 from holding BGF Euro Markets or generate 2.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 94.12% |
| Values | Daily Returns |
BGF Euro Markets vs. Impact ISR Performance
Performance |
| Timeline |
| BGF Euro Markets |
| Impact ISR Performance |
BGF Euro and Impact ISR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BGF Euro and Impact ISR
The main advantage of trading using opposite BGF Euro and Impact ISR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BGF Euro position performs unexpectedly, Impact ISR 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 Impact ISR will offset losses from the drop in Impact ISR's long position.| BGF Euro vs. Groupama Entreprises N | BGF Euro vs. Renaissance Europe C | BGF Euro vs. Superior Plus Corp | BGF Euro vs. Origin Agritech |
| Impact ISR vs. Superior Plus Corp | Impact ISR vs. Intel | Impact ISR vs. Volkswagen AG | Impact ISR vs. Bitwise Core Bitcoin |
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.
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