Correlation Between BCECN and Steven Madden
Specify exactly 2 symbols:
By analyzing existing cross correlation between BCECN 365 17 MAR 51 and Steven Madden, you can compare the effects of market volatilities on BCECN and Steven Madden 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 BCECN with a short position of Steven Madden. Check out your portfolio center. Please also check ongoing floating volatility patterns of BCECN and Steven Madden.
Diversification Opportunities for BCECN and Steven Madden
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BCECN and Steven is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding BCECN 365 17 MAR 51 and Steven Madden in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Steven Madden and BCECN 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 BCECN 365 17 MAR 51 are associated (or correlated) with Steven Madden. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Steven Madden has no effect on the direction of BCECN i.e., BCECN and Steven Madden go up and down completely randomly.
Pair Corralation between BCECN and Steven Madden
Assuming the 90 days trading horizon BCECN 365 17 MAR 51 is expected to generate 2.1 times more return on investment than Steven Madden. However, BCECN is 2.1 times more volatile than Steven Madden. It trades about 0.1 of its potential returns per unit of risk. Steven Madden is currently generating about -0.04 per unit of risk. If you would invest 7,144 in BCECN 365 17 MAR 51 on September 12, 2024 and sell it today you would earn a total of 421.00 from holding BCECN 365 17 MAR 51 or generate 5.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 77.27% |
| Values | Daily Returns |
BCECN 365 17 MAR 51 vs. Steven Madden
Performance |
| Timeline |
| BCECN 365 17 |
| Steven Madden |
BCECN and Steven Madden Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BCECN and Steven Madden
The main advantage of trading using opposite BCECN and Steven Madden positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BCECN position performs unexpectedly, Steven Madden 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 Steven Madden will offset losses from the drop in Steven Madden's long position.The idea behind BCECN 365 17 MAR 51 and Steven Madden 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.| Steven Madden vs. Weyco Group | Steven Madden vs. Caleres | Steven Madden vs. Rocky Brands | Steven Madden vs. Designer Brands |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |