Correlation Between BSIG Old and TPG

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

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

Diversification Opportunities for BSIG Old and TPG

0.0

Correlation Coefficient

BSIG Old  TPG

Pay attention - limited upside

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

Pair Corralation between BSIG Old and TPG

If you would invest (100.00) in BSIG Old on November 28, 2024 and sell it today you would earn a total of  100.00  from holding BSIG Old 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

BSIG Old  vs.  TPG Inc

BSIG Old

Risk-Adjusted Performance

Very Weak

Over the last 90 days BSIG Old has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable forward indicators, BSIG Old is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

TPG Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days TPG Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in March 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with BSIG Old and TPG

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

The idea behind BSIG Old and TPG Inc 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.