Correlation Between BPCEGP and Yum Brands
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By analyzing existing cross correlation between BPCEGP 5748 19 JUL 33 and Yum Brands, you can compare the effects of market volatilities on BPCEGP and Yum Brands 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 Yum Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of BPCEGP and Yum Brands.
Diversification Opportunities for BPCEGP and Yum Brands
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between BPCEGP and Yum is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding BPCEGP 5748 19 JUL 33 and Yum Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yum Brands 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 5748 19 JUL 33 are associated (or correlated) with Yum Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yum Brands has no effect on the direction of BPCEGP i.e., BPCEGP and Yum Brands go up and down completely randomly.
Pair Corralation between BPCEGP and Yum Brands
Assuming the 90 days trading horizon BPCEGP 5748 19 JUL 33 is expected to under-perform the Yum Brands. In addition to that, BPCEGP is 1.69 times more volatile than Yum Brands. It trades about -0.32 of its total potential returns per unit of risk. Yum Brands is currently generating about -0.05 per unit of volatility. If you would invest 13,992 in Yum Brands on August 28, 2024 and sell it today you would lose (287.00) from holding Yum Brands or give up 2.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 23.26% |
| Values | Daily Returns |
BPCEGP 5748 19 JUL 33 vs. Yum Brands
Performance |
| Timeline |
| BPCEGP 5748 19 |
| Yum Brands |
BPCEGP and Yum Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BPCEGP and Yum Brands
The main advantage of trading using opposite BPCEGP and Yum Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BPCEGP position performs unexpectedly, Yum Brands 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 Yum Brands will offset losses from the drop in Yum Brands' long position.The idea behind BPCEGP 5748 19 JUL 33 and Yum Brands pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Yum Brands vs. Shake Shack | Yum Brands vs. Papa Johns International | Yum Brands vs. Dominos Pizza | Yum Brands vs. Jack In The |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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