Correlation Between God Bless and Point Bridge
Can any of the company-specific risk be diversified away by investing in both God Bless and Point Bridge 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 God Bless and Point Bridge into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between God Bless America and Point Bridge GOP, you can compare the effects of market volatilities on God Bless and Point Bridge 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 God Bless with a short position of Point Bridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of God Bless and Point Bridge.
Diversification Opportunities for God Bless and Point Bridge
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between God and Point is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding God Bless America and Point Bridge GOP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Point Bridge GOP and God Bless 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 God Bless America are associated (or correlated) with Point Bridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Point Bridge GOP has no effect on the direction of God Bless i.e., God Bless and Point Bridge go up and down completely randomly.
Pair Corralation between God Bless and Point Bridge
Given the investment horizon of 90 days God Bless America is expected to generate 1.12 times more return on investment than Point Bridge. However, God Bless is 1.12 times more volatile than Point Bridge GOP. It trades about 0.37 of its potential returns per unit of risk. Point Bridge GOP is currently generating about 0.31 per unit of risk. If you would invest 3,680 in God Bless America on September 4, 2024 and sell it today you would earn a total of 333.00 from holding God Bless America or generate 9.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
God Bless America vs. Point Bridge GOP
Performance |
| Timeline |
| God Bless America |
| Point Bridge GOP |
God Bless and Point Bridge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with God Bless and Point Bridge
The main advantage of trading using opposite God Bless and Point Bridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if God Bless position performs unexpectedly, Point Bridge 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 Point Bridge will offset losses from the drop in Point Bridge's long position.| God Bless vs. Point Bridge GOP | God Bless vs. EA Series Trust | God Bless vs. EA Series Trust | God Bless vs. ETF Opportunities Trust |
| Point Bridge vs. ETF Opportunities Trust | Point Bridge vs. God Bless America | Point Bridge vs. Democratic Large Cap | Point Bridge vs. Siren DIVCON Leaders |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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