Correlation Between Global Crossing and BingEx
Can any of the company-specific risk be diversified away by investing in both Global Crossing and BingEx 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 Global Crossing and BingEx into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Crossing Airlines and BingEx, you can compare the effects of market volatilities on Global Crossing and BingEx 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 Global Crossing with a short position of BingEx. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Crossing and BingEx.
Diversification Opportunities for Global Crossing and BingEx
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Global and BingEx is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Global Crossing Airlines and BingEx in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BingEx and Global Crossing 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 Global Crossing Airlines are associated (or correlated) with BingEx. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BingEx has no effect on the direction of Global Crossing i.e., Global Crossing and BingEx go up and down completely randomly.
Pair Corralation between Global Crossing and BingEx
Assuming the 90 days horizon Global Crossing Airlines is expected to generate 1.14 times more return on investment than BingEx. However, Global Crossing is 1.14 times more volatile than BingEx. It trades about 0.35 of its potential returns per unit of risk. BingEx is currently generating about 0.11 per unit of risk. If you would invest 52.00 in Global Crossing Airlines on November 9, 2024 and sell it today you would earn a total of 23.00 from holding Global Crossing Airlines or generate 44.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Global Crossing Airlines vs. BingEx
Performance |
| Timeline |
| Global Crossing Airlines |
| BingEx |
Global Crossing and BingEx Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Crossing and BingEx
The main advantage of trading using opposite Global Crossing and BingEx positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Crossing position performs unexpectedly, BingEx 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 BingEx will offset losses from the drop in BingEx's long position.| Global Crossing vs. Finnair Oyj | Global Crossing vs. easyJet plc | Global Crossing vs. Norse Atlantic ASA | Global Crossing vs. Air New Zealand |
| BingEx vs. Black Hills | BingEx vs. Sun Life Financial | BingEx vs. Townsquare Media | BingEx vs. Boston Omaha 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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