Correlation Between 38869PAP9 and BBB Foods
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By analyzing existing cross correlation between GPK 1512 15 APR 26 and BBB Foods, you can compare the effects of market volatilities on 38869PAP9 and BBB Foods 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 38869PAP9 with a short position of BBB Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of 38869PAP9 and BBB Foods.
Diversification Opportunities for 38869PAP9 and BBB Foods
Modest diversification
The 3 months correlation between 38869PAP9 and BBB is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding GPK 1512 15 APR 26 and BBB Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BBB Foods and 38869PAP9 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 GPK 1512 15 APR 26 are associated (or correlated) with BBB Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BBB Foods has no effect on the direction of 38869PAP9 i.e., 38869PAP9 and BBB Foods go up and down completely randomly.
Pair Corralation between 38869PAP9 and BBB Foods
Assuming the 90 days trading horizon GPK 1512 15 APR 26 is expected to under-perform the BBB Foods. But the bond apears to be less risky and, when comparing its historical volatility, GPK 1512 15 APR 26 is 1.58 times less risky than BBB Foods. The bond trades about -0.04 of its potential returns per unit of risk. The BBB Foods is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 2,724 in BBB Foods on August 29, 2024 and sell it today you would earn a total of 98.00 from holding BBB Foods or generate 3.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 34.92% |
| Values | Daily Returns |
GPK 1512 15 APR 26 vs. BBB Foods
Performance |
| Timeline |
| GPK 1512 15 |
| BBB Foods |
38869PAP9 and BBB Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 38869PAP9 and BBB Foods
The main advantage of trading using opposite 38869PAP9 and BBB Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 38869PAP9 position performs unexpectedly, BBB Foods 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 BBB Foods will offset losses from the drop in BBB Foods' long position.| 38869PAP9 vs. AEP TEX INC | 38869PAP9 vs. US BANK NATIONAL | 38869PAP9 vs. PayPal Holdings | 38869PAP9 vs. IONQ Inc |
| BBB Foods vs. BJs Wholesale Club | BBB Foods vs. Dollar General | BBB Foods vs. Dollar Tree | BBB Foods vs. Target |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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