Correlation Between NYSE Composite and BPI Energy
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and BPI Energy 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 NYSE Composite and BPI Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and BPI Energy Holdings, you can compare the effects of market volatilities on NYSE Composite and BPI Energy 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 NYSE Composite with a short position of BPI Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and BPI Energy.
Diversification Opportunities for NYSE Composite and BPI Energy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NYSE and BPI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and BPI Energy Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BPI Energy Holdings and NYSE Composite 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 NYSE Composite are associated (or correlated) with BPI Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BPI Energy Holdings has no effect on the direction of NYSE Composite i.e., NYSE Composite and BPI Energy go up and down completely randomly.
Pair Corralation between NYSE Composite and BPI Energy
If you would invest 1,550,264 in NYSE Composite on August 31, 2024 and sell it today you would earn a total of 476,940 from holding NYSE Composite or generate 30.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.27% |
| Values | Daily Returns |
NYSE Composite vs. BPI Energy Holdings
Performance |
| Timeline |
NYSE Composite and BPI Energy Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
BPI Energy Holdings
Pair trading matchups for BPI Energy
Pair Trading with NYSE Composite and BPI Energy
The main advantage of trading using opposite NYSE Composite and BPI Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, BPI Energy 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 BPI Energy will offset losses from the drop in BPI Energy's long position.| NYSE Composite vs. Nextplat Corp | NYSE Composite vs. Qualys Inc | NYSE Composite vs. Cadence Design Systems | NYSE Composite vs. Asure Software |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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