Correlation Between SP Merval and BHP Group
Can any of the company-specific risk be diversified away by investing in both SP Merval and BHP Group 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 SP Merval and BHP Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SP Merval and BHP Group Limited, you can compare the effects of market volatilities on SP Merval and BHP Group 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 SP Merval with a short position of BHP Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of SP Merval and BHP Group.
Diversification Opportunities for SP Merval and BHP Group
Pay attention - limited upside
The 3 months correlation between MERV and BHP is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SP Merval and BHP Group Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BHP Group Limited and SP Merval 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 SP Merval are associated (or correlated) with BHP Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BHP Group Limited has no effect on the direction of SP Merval i.e., SP Merval and BHP Group go up and down completely randomly.
Pair Corralation between SP Merval and BHP Group
If you would invest 100,000,000 in SP Merval on September 2, 2024 and sell it today you would earn a total of 0.00 from holding SP Merval or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SP Merval vs. BHP Group Limited
Performance |
| Timeline |
SP Merval and BHP Group Volatility Contrast
Predicted Return Density |
| Returns |
SP Merval
Pair trading matchups for SP Merval
BHP Group Limited
Pair trading matchups for BHP Group
Pair Trading with SP Merval and BHP Group
The main advantage of trading using opposite SP Merval and BHP Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SP Merval position performs unexpectedly, BHP Group 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 BHP Group will offset losses from the drop in BHP Group's long position.| SP Merval vs. Transportadora de Gas | SP Merval vs. Agrometal SAI | SP Merval vs. United States Steel | SP Merval vs. Telecom Argentina |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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