Correlation Between World Houseware and BGC
Can any of the company-specific risk be diversified away by investing in both World Houseware and BGC 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 World Houseware and BGC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between World Houseware Limited and BGC Group, you can compare the effects of market volatilities on World Houseware and BGC 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 World Houseware with a short position of BGC. Check out your portfolio center. Please also check ongoing floating volatility patterns of World Houseware and BGC.
Diversification Opportunities for World Houseware and BGC
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between World and BGC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding World Houseware Limited and BGC Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BGC Group and World Houseware 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 World Houseware Limited are associated (or correlated) with BGC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BGC Group has no effect on the direction of World Houseware i.e., World Houseware and BGC go up and down completely randomly.
Pair Corralation between World Houseware and BGC
If you would invest 934.00 in BGC Group on August 28, 2024 and sell it today you would earn a total of 42.00 from holding BGC Group or generate 4.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
World Houseware Limited vs. BGC Group
Performance |
| Timeline |
| World Houseware |
| BGC Group |
World Houseware and BGC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with World Houseware and BGC
The main advantage of trading using opposite World Houseware and BGC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if World Houseware position performs unexpectedly, BGC 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 will offset losses from the drop in BGC's long position.| World Houseware vs. Trane Technologies plc | World Houseware vs. Carrier Global Corp | World Houseware vs. Johnson Controls International | World Houseware vs. Lennox International |
| BGC vs. Universal | BGC vs. Mid Atlantic Home Health | BGC vs. Molson Coors Brewing | BGC vs. Bassett Furniture Industries |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |