Correlation Between MGC Pharmaceuticals and BC Bud
Can any of the company-specific risk be diversified away by investing in both MGC Pharmaceuticals and BC Bud 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 MGC Pharmaceuticals and BC Bud into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MGC Pharmaceuticals and The BC Bud, you can compare the effects of market volatilities on MGC Pharmaceuticals and BC Bud 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 MGC Pharmaceuticals with a short position of BC Bud. Check out your portfolio center. Please also check ongoing floating volatility patterns of MGC Pharmaceuticals and BC Bud.
Diversification Opportunities for MGC Pharmaceuticals and BC Bud
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MGC and BCBCF is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MGC Pharmaceuticals and The BC Bud in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BC Bud and MGC Pharmaceuticals 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 MGC Pharmaceuticals are associated (or correlated) with BC Bud. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BC Bud has no effect on the direction of MGC Pharmaceuticals i.e., MGC Pharmaceuticals and BC Bud go up and down completely randomly.
Pair Corralation between MGC Pharmaceuticals and BC Bud
If you would invest 1.57 in The BC Bud on November 8, 2024 and sell it today you would earn a total of 5.37 from holding The BC Bud or generate 342.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
MGC Pharmaceuticals vs. The BC Bud
Performance |
| Timeline |
| MGC Pharmaceuticals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| BC Bud |
MGC Pharmaceuticals and BC Bud Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MGC Pharmaceuticals and BC Bud
The main advantage of trading using opposite MGC Pharmaceuticals and BC Bud positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MGC Pharmaceuticals position performs unexpectedly, BC Bud 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 BC Bud will offset losses from the drop in BC Bud's long position.| MGC Pharmaceuticals vs. Target Group | MGC Pharmaceuticals vs. Aequus Pharmaceuticals | MGC Pharmaceuticals vs. Filament Health Corp | MGC Pharmaceuticals vs. Sky Century Investment |
| BC Bud vs. Amexdrug | BC Bud vs. Crescita Therapeutics | BC Bud vs. Aion Therapeutic | BC Bud vs. Alterola Biotech |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |