Correlation Between Senvest Capital and BCE
Can any of the company-specific risk be diversified away by investing in both Senvest Capital and BCE 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 Senvest Capital and BCE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Senvest Capital and BCE Inc Pref, you can compare the effects of market volatilities on Senvest Capital and BCE 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 Senvest Capital with a short position of BCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Senvest Capital and BCE.
Diversification Opportunities for Senvest Capital and BCE
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Senvest and BCE is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Senvest Capital and BCE Inc Pref in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BCE Inc Pref and Senvest Capital 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 Senvest Capital are associated (or correlated) with BCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BCE Inc Pref has no effect on the direction of Senvest Capital i.e., Senvest Capital and BCE go up and down completely randomly.
Pair Corralation between Senvest Capital and BCE
Assuming the 90 days trading horizon Senvest Capital is expected to generate 1.66 times more return on investment than BCE. However, Senvest Capital is 1.66 times more volatile than BCE Inc Pref. It trades about 0.49 of its potential returns per unit of risk. BCE Inc Pref is currently generating about 0.35 per unit of risk. If you would invest 32,500 in Senvest Capital on September 15, 2024 and sell it today you would earn a total of 2,500 from holding Senvest Capital or generate 7.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Senvest Capital vs. BCE Inc Pref
Performance |
| Timeline |
| Senvest Capital |
| BCE Inc Pref |
Senvest Capital and BCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Senvest Capital and BCE
The main advantage of trading using opposite Senvest Capital and BCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Senvest Capital position performs unexpectedly, BCE 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 BCE will offset losses from the drop in BCE's long position.| Senvest Capital vs. Upstart Investments | Senvest Capital vs. Solid Impact Investments | Senvest Capital vs. CNJ Capital Investments | Senvest Capital vs. Canadian General Investments |
| BCE vs. North American Construction | BCE vs. Verizon Communications CDR | BCE vs. Altair Resources | BCE vs. Boat Rocker Media |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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