Correlation Between BGF Global and Azvalor Global
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By analyzing existing cross correlation between BGF Global Allocation and Azvalor Global Value, you can compare the effects of market volatilities on BGF Global and Azvalor Global 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 Global with a short position of Azvalor Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of BGF Global and Azvalor Global.
Diversification Opportunities for BGF Global and Azvalor Global
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BGF and Azvalor is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding BGF Global Allocation and Azvalor Global Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Azvalor Global Value and BGF Global 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 Global Allocation are associated (or correlated) with Azvalor Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Azvalor Global Value has no effect on the direction of BGF Global i.e., BGF Global and Azvalor Global go up and down completely randomly.
Pair Corralation between BGF Global and Azvalor Global
Assuming the 90 days trading horizon BGF Global Allocation is expected to generate 0.74 times more return on investment than Azvalor Global. However, BGF Global Allocation is 1.34 times less risky than Azvalor Global. It trades about 0.2 of its potential returns per unit of risk. Azvalor Global Value is currently generating about 0.03 per unit of risk. If you would invest 7,516 in BGF Global Allocation on September 12, 2024 and sell it today you would earn a total of 177.00 from holding BGF Global Allocation or generate 2.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 90.91% |
| Values | Daily Returns |
BGF Global Allocation vs. Azvalor Global Value
Performance |
| Timeline |
| BGF Global Allocation |
| Azvalor Global Value |
BGF Global and Azvalor Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BGF Global and Azvalor Global
The main advantage of trading using opposite BGF Global and Azvalor Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BGF Global position performs unexpectedly, Azvalor Global 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 Azvalor Global will offset losses from the drop in Azvalor Global's long position.| BGF Global vs. Groupama Entreprises N | BGF Global vs. Renaissance Europe C | BGF Global vs. Superior Plus Corp | BGF Global vs. Origin Agritech |
| Azvalor Global vs. Esfera Robotics R | Azvalor Global vs. R co Valor F | Azvalor Global vs. CM AM Monplus NE | Azvalor Global vs. IE00B0H4TS55 |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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