Correlation Between BGG and EOSDAC

Can any of the company-specific risk be diversified away by investing in both BGG and EOSDAC 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 BGG and EOSDAC into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between BGG and EOSDAC, you can compare the effects of market volatilities on BGG and EOSDAC 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 BGG with a short position of EOSDAC. Check out your portfolio center. Please also check ongoing floating volatility patterns of BGG and EOSDAC.

Diversification Opportunities for BGG and EOSDAC

0.0

Correlation Coefficient

BGG  EOSDAC

Pay attention - limited upside

The 3 months correlation between BGG and EOSDAC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BGG and EOSDAC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EOSDAC and BGG 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 BGG are associated (or correlated) with EOSDAC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EOSDAC has no effect on the direction of BGG i.e., BGG and EOSDAC go up and down completely randomly.

Pair Corralation between BGG and EOSDAC

If you would invest (100.00) in BGG on December 30, 2024 and sell it today you would earn a total of  100.00  from holding BGG or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

BGG  vs.  EOSDAC

BGG

Risk-Adjusted Performance

Very Weak

Over the last 90 days BGG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, BGG is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

EOSDAC

Risk-Adjusted Performance

Very Weak

Over the last 90 days EOSDAC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Crypto's basic indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for EOSDAC investors.

Pair Trading with BGG and EOSDAC

The main advantage of trading using opposite BGG and EOSDAC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BGG position performs unexpectedly, EOSDAC 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 EOSDAC will offset losses from the drop in EOSDAC's long position.

The idea behind BGG and EOSDAC pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.