Correlation Between BGF Asian and BGF World
Can any of the company-specific risk be diversified away by investing in both BGF Asian and BGF World 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 Asian and BGF World into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BGF Asian Tiger and BGF World Gold, you can compare the effects of market volatilities on BGF Asian and BGF World 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 Asian with a short position of BGF World. Check out your portfolio center. Please also check ongoing floating volatility patterns of BGF Asian and BGF World.
Diversification Opportunities for BGF Asian and BGF World
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 Asian Tiger and BGF World Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BGF World Gold and BGF Asian 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 Asian Tiger are associated (or correlated) with BGF World. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BGF World Gold has no effect on the direction of BGF Asian i.e., BGF Asian and BGF World go up and down completely randomly.
Pair Corralation between BGF Asian and BGF World
If you would invest 2,711 in BGF World Gold on December 4, 2024 and sell it today you would earn a total of 1,517 from holding BGF World Gold or generate 55.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
BGF Asian Tiger vs. BGF World Gold
Performance |
| Timeline |
| BGF Asian Tiger |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| BGF World Gold |
BGF Asian and BGF World Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BGF Asian and BGF World
The main advantage of trading using opposite BGF Asian and BGF World positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BGF Asian position performs unexpectedly, BGF World 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 World will offset losses from the drop in BGF World's long position.| BGF Asian vs. BGF Global Allocation | BGF Asian vs. BGF World Gold | BGF Asian vs. BGF Global Allocation | BGF Asian vs. BGF Euro Markets |
| BGF World vs. R co Thematic Silver | BGF World vs. Esfera Robotics R | BGF World vs. R co Valor F | BGF World vs. CM AM Monplus NE |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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