Correlation Between Point Bridge and God Bless
Can any of the company-specific risk be diversified away by investing in both Point Bridge and God Bless 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 Point Bridge and God Bless into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Point Bridge GOP and God Bless America, you can compare the effects of market volatilities on Point Bridge and God Bless 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 Point Bridge with a short position of God Bless. Check out your portfolio center. Please also check ongoing floating volatility patterns of Point Bridge and God Bless.
Diversification Opportunities for Point Bridge and God Bless
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Point and God is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Point Bridge GOP and God Bless America in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on God Bless America and Point Bridge 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 Point Bridge GOP are associated (or correlated) with God Bless. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of God Bless America has no effect on the direction of Point Bridge i.e., Point Bridge and God Bless go up and down completely randomly.
Pair Corralation between Point Bridge and God Bless
Given the investment horizon of 90 days Point Bridge is expected to generate 1.77 times less return on investment than God Bless. But when comparing it to its historical volatility, Point Bridge GOP is 1.14 times less risky than God Bless. It trades about 0.12 of its potential returns per unit of risk. God Bless America is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 3,633 in God Bless America on September 13, 2024 and sell it today you would earn a total of 397.00 from holding God Bless America or generate 10.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Point Bridge GOP vs. God Bless America
Performance |
| Timeline |
| Point Bridge GOP |
| God Bless America |
Point Bridge and God Bless Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Point Bridge and God Bless
The main advantage of trading using opposite Point Bridge and God Bless positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Point Bridge position performs unexpectedly, God Bless 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 God Bless will offset losses from the drop in God Bless' long position.| Point Bridge vs. ETF Opportunities Trust | Point Bridge vs. God Bless America | Point Bridge vs. Democratic Large Cap | Point Bridge vs. Siren DIVCON Leaders |
| God Bless vs. Point Bridge GOP | God Bless vs. EA Series Trust | God Bless vs. EA Series Trust | God Bless vs. ETF Opportunities Trust |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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