Correlation Between NYSE Composite and BPCEGP
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By analyzing existing cross correlation between NYSE Composite and BPCEGP 27 01 OCT 29, you can compare the effects of market volatilities on NYSE Composite and BPCEGP 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 BPCEGP. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and BPCEGP.
Diversification Opportunities for NYSE Composite and BPCEGP
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between NYSE and BPCEGP is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and BPCEGP 27 01 OCT 29 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BPCEGP 27 01 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 BPCEGP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BPCEGP 27 01 has no effect on the direction of NYSE Composite i.e., NYSE Composite and BPCEGP go up and down completely randomly.
Pair Corralation between NYSE Composite and BPCEGP
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.54 times more return on investment than BPCEGP. However, NYSE Composite is 1.87 times less risky than BPCEGP. It trades about 0.15 of its potential returns per unit of risk. BPCEGP 27 01 OCT 29 is currently generating about -0.1 per unit of risk. If you would invest 1,793,449 in NYSE Composite on September 2, 2024 and sell it today you would earn a total of 233,755 from holding NYSE Composite or generate 13.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 24.6% |
| Values | Daily Returns |
NYSE Composite vs. BPCEGP 27 01 OCT 29
Performance |
| Timeline |
NYSE Composite and BPCEGP Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
BPCEGP 27 01 OCT 29
Pair trading matchups for BPCEGP
Pair Trading with NYSE Composite and BPCEGP
The main advantage of trading using opposite NYSE Composite and BPCEGP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, BPCEGP 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 BPCEGP will offset losses from the drop in BPCEGP's long position.| NYSE Composite vs. Simon Property Group | NYSE Composite vs. Merit Medical Systems | NYSE Composite vs. Catalent | NYSE Composite vs. Titan Machinery |
| BPCEGP vs. Eastern Co | BPCEGP vs. RBC Bearings Incorporated | BPCEGP vs. Anheuser Busch Inbev | BPCEGP vs. Estee Lauder Companies |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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