Correlation Between China Infrastructure and BC Bud
Can any of the company-specific risk be diversified away by investing in both China Infrastructure and BC Bud 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 China Infrastructure and BC Bud into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China Infrastructure Construction and The BC Bud, you can compare the effects of market volatilities on China Infrastructure and BC Bud 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 China Infrastructure with a short position of BC Bud. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Infrastructure and BC Bud.
Diversification Opportunities for China Infrastructure and BC Bud
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between China and BCBCF is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding China Infrastructure Construct and The BC Bud in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BC Bud and China Infrastructure 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 China Infrastructure Construction are associated (or correlated) with BC Bud. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BC Bud has no effect on the direction of China Infrastructure i.e., China Infrastructure and BC Bud go up and down completely randomly.
Pair Corralation between China Infrastructure and BC Bud
If you would invest 5.77 in The BC Bud on December 1, 2024 and sell it today you would lose (1.27) from holding The BC Bud or give up 22.01% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
China Infrastructure Construct vs. The BC Bud
Performance |
Timeline |
China Infrastructure |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
BC Bud |
China Infrastructure and BC Bud Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with China Infrastructure and BC Bud
The main advantage of trading using opposite China Infrastructure and BC Bud positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Infrastructure position performs unexpectedly, BC Bud 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 BC Bud will offset losses from the drop in BC Bud's long position.China Infrastructure vs. Medicine Man Technologies | China Infrastructure vs. Kona Gold Solutions | China Infrastructure vs. Green Thumb Industries | China Infrastructure vs. Cann American Corp |
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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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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