Correlation Between NYSE Composite and BPCEGP
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By analyzing existing cross correlation between NYSE Composite and BPCEGP 4625 12 SEP 28, 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
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between NYSE and BPCEGP is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and BPCEGP 4625 12 SEP 28 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BPCEGP 4625 12 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 4625 12 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 1.89 times less return on investment than BPCEGP. But when comparing it to its historical volatility, NYSE Composite is 3.73 times less risky than BPCEGP. It trades about 0.41 of its potential returns per unit of risk. BPCEGP 4625 12 SEP 28 is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 9,233 in BPCEGP 4625 12 SEP 28 on September 2, 2024 and sell it today you would earn a total of 419.00 from holding BPCEGP 4625 12 SEP 28 or generate 4.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 47.62% |
| Values | Daily Returns |
NYSE Composite vs. BPCEGP 4625 12 SEP 28
Performance |
| Timeline |
NYSE Composite and BPCEGP Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
BPCEGP 4625 12 SEP 28
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 |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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