Correlation Between BPCEGP and Dow Jones
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By analyzing existing cross correlation between BPCEGP 45 15 MAR 25 and Dow Jones Industrial, you can compare the effects of market volatilities on BPCEGP and Dow Jones 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 BPCEGP with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of BPCEGP and Dow Jones.
Diversification Opportunities for BPCEGP and Dow Jones
Poor diversification
The 3 months correlation between BPCEGP and Dow is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding BPCEGP 45 15 MAR 25 and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial and BPCEGP 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 BPCEGP 45 15 MAR 25 are associated (or correlated) with Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of BPCEGP i.e., BPCEGP and Dow Jones go up and down completely randomly.
Pair Corralation between BPCEGP and Dow Jones
Assuming the 90 days trading horizon BPCEGP is expected to generate 263.0 times less return on investment than Dow Jones. But when comparing it to its historical volatility, BPCEGP 45 15 MAR 25 is 4.22 times less risky than Dow Jones. It trades about 0.0 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 3,815,030 in Dow Jones Industrial on August 28, 2024 and sell it today you would earn a total of 658,627 from holding Dow Jones Industrial or generate 17.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 43.54% |
| Values | Daily Returns |
BPCEGP 45 15 MAR 25 vs. Dow Jones Industrial
Performance |
| Timeline |
BPCEGP and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
BPCEGP 45 15 MAR 25
Pair trading matchups for BPCEGP
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with BPCEGP and Dow Jones
The main advantage of trading using opposite BPCEGP and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BPCEGP position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| BPCEGP vs. Canlan Ice Sports | BPCEGP vs. JD Sports Fashion | BPCEGP vs. Verra Mobility Corp | BPCEGP vs. Mesa Air Group |
| Dow Jones vs. CECO Environmental Corp | Dow Jones vs. Western Acquisition Ventures | Dow Jones vs. Tyson Foods | Dow Jones vs. Inflection Point Acquisition |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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