Correlation Between BGF Euro and BGF Asian
Can any of the company-specific risk be diversified away by investing in both BGF Euro and BGF Asian 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 BGF Euro and BGF Asian into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BGF Euro Markets and BGF Asian Tiger, you can compare the effects of market volatilities on BGF Euro and BGF Asian 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 BGF Euro with a short position of BGF Asian. Check out your portfolio center. Please also check ongoing floating volatility patterns of BGF Euro and BGF Asian.
Diversification Opportunities for BGF Euro and BGF Asian
Pay attention - limited upside
The 3 months correlation between BGF and BGF is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BGF Euro Markets and BGF Asian Tiger in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BGF Asian Tiger and BGF Euro 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 BGF Euro Markets are associated (or correlated) with BGF Asian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BGF Asian Tiger has no effect on the direction of BGF Euro i.e., BGF Euro and BGF Asian go up and down completely randomly.
Pair Corralation between BGF Euro and BGF Asian
If you would invest 4,279 in BGF Euro Markets on December 4, 2024 and sell it today you would earn a total of 641.00 from holding BGF Euro Markets or generate 14.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
BGF Euro Markets vs. BGF Asian Tiger
Performance |
| Timeline |
| BGF Euro Markets |
| BGF Asian Tiger |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
BGF Euro and BGF Asian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BGF Euro and BGF Asian
The main advantage of trading using opposite BGF Euro and BGF Asian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BGF Euro position performs unexpectedly, BGF Asian 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 BGF Asian will offset losses from the drop in BGF Asian's long position.| BGF Euro vs. JPM Global Natural | BGF Euro vs. Azvalor Global Value | BGF Euro vs. Templeton Global AD | BGF Euro vs. Cobas Global PP |
| BGF Asian vs. BGF Global Allocation | BGF Asian vs. BGF World Gold | BGF Asian vs. BGF Global Allocation | BGF Asian vs. BGF Euro Markets |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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