Correlation Between Verizon Communications and BGC Partners
Can any of the company-specific risk be diversified away by investing in both Verizon Communications and BGC Partners at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Verizon Communications and BGC Partners into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Verizon Communications and BGC Partners, you can compare the effects of market volatilities on Verizon Communications and BGC Partners 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 Verizon Communications with a short position of BGC Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of Verizon Communications and BGC Partners.
Diversification Opportunities for Verizon Communications and BGC Partners
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Verizon and BGC is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Verizon Communications and BGC Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BGC Partners and Verizon Communications 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 Verizon Communications are associated (or correlated) with BGC Partners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BGC Partners has no effect on the direction of Verizon Communications i.e., Verizon Communications and BGC Partners go up and down completely randomly.
Pair Corralation between Verizon Communications and BGC Partners
If you would invest 4,213 in Verizon Communications on September 1, 2024 and sell it today you would earn a total of 221.00 from holding Verizon Communications or generate 5.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Verizon Communications vs. BGC Partners
Performance |
| Timeline |
| Verizon Communications |
| BGC Partners |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Verizon Communications and BGC Partners Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Verizon Communications and BGC Partners
The main advantage of trading using opposite Verizon Communications and BGC Partners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Verizon Communications position performs unexpectedly, BGC Partners 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 BGC Partners will offset losses from the drop in BGC Partners' long position.| Verizon Communications vs. T Mobile | Verizon Communications vs. Comcast Corp | Verizon Communications vs. Lumen Technologies | Verizon Communications vs. Charter Communications |
| BGC Partners vs. Newmark Group | BGC Partners vs. Consolidated Communications | BGC Partners vs. Brookline Bancorp | BGC Partners vs. SLR Investment Corp |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |