Correlation Between BGF Global and Cobas Global
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By analyzing existing cross correlation between BGF Global Allocation and Cobas Global PP, you can compare the effects of market volatilities on BGF Global and Cobas 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 Cobas Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of BGF Global and Cobas Global.
Diversification Opportunities for BGF Global and Cobas Global
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between BGF and Cobas is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding BGF Global Allocation and Cobas Global PP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cobas Global PP 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 Cobas Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cobas Global PP has no effect on the direction of BGF Global i.e., BGF Global and Cobas Global go up and down completely randomly.
Pair Corralation between BGF Global and Cobas Global
Assuming the 90 days trading horizon BGF Global Allocation is expected to generate 0.72 times more return on investment than Cobas Global. However, BGF Global Allocation is 1.4 times less risky than Cobas Global. It trades about 0.2 of its potential returns per unit of risk. Cobas Global PP is currently generating about 0.11 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 | Very Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
BGF Global Allocation vs. Cobas Global PP
Performance |
| Timeline |
| BGF Global Allocation |
| Cobas Global PP |
BGF Global and Cobas Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BGF Global and Cobas Global
The main advantage of trading using opposite BGF Global and Cobas Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BGF Global position performs unexpectedly, Cobas 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 Cobas Global will offset losses from the drop in Cobas 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 |
| Cobas Global vs. Swedbank Robur Corporate | Cobas Global vs. UBS Money Market | Cobas Global vs. Algebris UCITS Funds | Cobas Global vs. BlackRock Global Funds |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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