Correlation Between BGF Global and BGF Asian
Can any of the company-specific risk be diversified away by investing in both BGF Global and BGF Asian 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 BGF Global and BGF Asian into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BGF Global Allocation and BGF Asian Tiger, you can compare the effects of market volatilities on BGF Global and BGF Asian 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 Global with a short position of BGF Asian. Check out your portfolio center. Please also check ongoing floating volatility patterns of BGF Global and BGF Asian.
Diversification Opportunities for BGF Global and BGF Asian
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BGF and BGF is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BGF Global Allocation and BGF Asian Tiger in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BGF Asian Tiger and BGF Global 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 Global Allocation are associated (or correlated) with BGF Asian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BGF Asian Tiger has no effect on the direction of BGF Global i.e., BGF Global and BGF Asian go up and down completely randomly.
Pair Corralation between BGF Global and BGF Asian
If you would invest (100.00) in BGF Asian Tiger on September 14, 2024 and sell it today you would earn a total of 100.00 from holding BGF Asian Tiger or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BGF Global Allocation vs. BGF Asian Tiger
Performance |
| Timeline |
| BGF Global Allocation |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| BGF Asian Tiger |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
BGF Global and BGF Asian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BGF Global and BGF Asian
The main advantage of trading using opposite BGF Global and BGF Asian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BGF Global position performs unexpectedly, BGF Asian 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 BGF Asian will offset losses from the drop in BGF Asian's long position.| BGF Global vs. BGF Global Allocation | BGF Global vs. BGF World Gold | BGF Global vs. BGF Global Allocation | BGF Global vs. BGF Euro Markets |
| BGF Asian vs. FF Global | BGF Asian vs. Aberdeen Global Asian | BGF Asian vs. BlackRock Global Funds | BGF Asian vs. Azvalor Global Value |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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