Correlation Between BCECN and Aldel Financial
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By analyzing existing cross correlation between BCECN 215 15 FEB 32 and Aldel Financial II, you can compare the effects of market volatilities on BCECN and Aldel Financial 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 Aldel Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of BCECN and Aldel Financial.
Diversification Opportunities for BCECN and Aldel Financial
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BCECN and Aldel is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding BCECN 215 15 FEB 32 and Aldel Financial II in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aldel Financial II 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 215 15 FEB 32 are associated (or correlated) with Aldel Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aldel Financial II has no effect on the direction of BCECN i.e., BCECN and Aldel Financial go up and down completely randomly.
Pair Corralation between BCECN and Aldel Financial
Assuming the 90 days trading horizon BCECN 215 15 FEB 32 is expected to under-perform the Aldel Financial. In addition to that, BCECN is 8.0 times more volatile than Aldel Financial II. It trades about -0.23 of its total potential returns per unit of risk. Aldel Financial II is currently generating about 0.18 per unit of volatility. If you would invest 992.00 in Aldel Financial II on October 21, 2024 and sell it today you would earn a total of 3.00 from holding Aldel Financial II or generate 0.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
BCECN 215 15 FEB 32 vs. Aldel Financial II
Performance |
| Timeline |
| BCECN 215 15 |
| Aldel Financial II |
BCECN and Aldel Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BCECN and Aldel Financial
The main advantage of trading using opposite BCECN and Aldel Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BCECN position performs unexpectedly, Aldel Financial 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 Aldel Financial will offset losses from the drop in Aldel Financial's long position.| BCECN vs. Aldel Financial II | BCECN vs. SM Investments | BCECN vs. Guangdong Investment Limited | BCECN vs. Electrovaya Common Shares |
| Aldel Financial vs. Addus HomeCare | Aldel Financial vs. United States Steel | Aldel Financial vs. Rocky Brands | Aldel Financial vs. InfuSystems Holdings |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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