Correlation Between BCE and Shui On
Can any of the company-specific risk be diversified away by investing in both BCE and Shui On 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 BCE and Shui On into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BCE Inc and Shui On Land, you can compare the effects of market volatilities on BCE and Shui On 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 BCE with a short position of Shui On. Check out your portfolio center. Please also check ongoing floating volatility patterns of BCE and Shui On.
Diversification Opportunities for BCE and Shui On
Very good diversification
The 3 months correlation between BCE and Shui is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding BCE Inc and Shui On Land in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shui On Land and BCE 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 BCE Inc are associated (or correlated) with Shui On. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shui On Land has no effect on the direction of BCE i.e., BCE and Shui On go up and down completely randomly.
Pair Corralation between BCE and Shui On
If you would invest 6.00 in Shui On Land on September 25, 2024 and sell it today you would earn a total of 0.00 from holding Shui On Land or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 4.76% |
Values | Daily Returns |
BCE Inc vs. Shui On Land
Performance |
Timeline |
BCE Inc |
Shui On Land |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
BCE and Shui On Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with BCE and Shui On
The main advantage of trading using opposite BCE and Shui On positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BCE position performs unexpectedly, Shui On 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 Shui On will offset losses from the drop in Shui On's long position.BCE vs. Grab Holdings | BCE vs. Cadence Design Systems | BCE vs. Aquagold International | BCE vs. Morningstar Unconstrained Allocation |
Shui On vs. Fidus Investment Corp | Shui On vs. Inhibrx | Shui On vs. PennantPark Floating Rate | Shui On vs. SEI Investments |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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