Correlation Between International Business and BGC Partners
Can any of the company-specific risk be diversified away by investing in both International Business and BGC Partners 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 International Business and BGC Partners into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between International Business Machines and BGC Partners, you can compare the effects of market volatilities on International Business and BGC Partners 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 International Business with a short position of BGC Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Business and BGC Partners.
Diversification Opportunities for International Business and BGC Partners
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between International and BGC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding International Business Machine and BGC Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BGC Partners and International Business 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 International Business Machines are associated (or correlated) with BGC Partners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BGC Partners has no effect on the direction of International Business i.e., International Business and BGC Partners go up and down completely randomly.
Pair Corralation between International Business and BGC Partners
If you would invest 22,267 in International Business Machines on November 7, 2024 and sell it today you would earn a total of 4,179 from holding International Business Machines or generate 18.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
International Business Machine vs. BGC Partners
Performance |
| Timeline |
| International Business |
| BGC Partners |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
International Business and BGC Partners Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Business and BGC Partners
The main advantage of trading using opposite International Business and BGC Partners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Business position performs unexpectedly, BGC Partners 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 BGC Partners will offset losses from the drop in BGC Partners' long position.| International Business vs. EPAM Systems | International Business vs. Infosys Ltd ADR | International Business vs. Cognizant Technology Solutions | International Business vs. FiscalNote Holdings |
| BGC Partners vs. Newmark Group | BGC Partners vs. Brookline Bancorp | BGC Partners vs. SLR Investment 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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