Correlation Between Financial and Bce
Can any of the company-specific risk be diversified away by investing in both Financial and Bce 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 Financial and Bce into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Financial 15 Split and Bce Inc Pref, you can compare the effects of market volatilities on Financial and Bce 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 Financial with a short position of Bce. Check out your portfolio center. Please also check ongoing floating volatility patterns of Financial and Bce.
Diversification Opportunities for Financial and Bce
Very good diversification
The 3 months correlation between Financial and Bce is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Financial 15 Split and Bce Inc Pref in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bce Inc Pref and Financial 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 Financial 15 Split are associated (or correlated) with Bce. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bce Inc Pref has no effect on the direction of Financial i.e., Financial and Bce go up and down completely randomly.
Pair Corralation between Financial and Bce
Assuming the 90 days trading horizon Financial 15 Split is expected to generate 0.28 times more return on investment than Bce. However, Financial 15 Split is 3.63 times less risky than Bce. It trades about 0.18 of its potential returns per unit of risk. Bce Inc Pref is currently generating about 0.01 per unit of risk. If you would invest 824.00 in Financial 15 Split on October 16, 2024 and sell it today you would earn a total of 252.00 from holding Financial 15 Split or generate 30.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Financial 15 Split vs. Bce Inc Pref
Performance |
| Timeline |
| Financial 15 Split |
| Bce Inc Pref |
Financial and Bce Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Financial and Bce
The main advantage of trading using opposite Financial and Bce positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Financial position performs unexpectedly, Bce 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 Bce will offset losses from the drop in Bce's long position.| Financial vs. North American Financial | Financial vs. Dividend 15 Split | Financial vs. Dividend Growth Split | Financial vs. Dividend 15 Split |
| Bce vs. Royal Bank of | Bce vs. DRI Healthcare Trust | Bce vs. Financial 15 Split | Bce vs. CI Financial 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |