Correlation Between Global Partners and BHCCN
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By analyzing existing cross correlation between Global Partners LP and BHCCN 14 15 OCT 30, you can compare the effects of market volatilities on Global Partners and BHCCN 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 Global Partners with a short position of BHCCN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Partners and BHCCN.
Diversification Opportunities for Global Partners and BHCCN
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Global and BHCCN is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Global Partners LP and BHCCN 14 15 OCT 30 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BHCCN 14 15 and Global Partners 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 Global Partners LP are associated (or correlated) with BHCCN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BHCCN 14 15 has no effect on the direction of Global Partners i.e., Global Partners and BHCCN go up and down completely randomly.
Pair Corralation between Global Partners and BHCCN
Assuming the 90 days trading horizon Global Partners is expected to generate 3.07 times less return on investment than BHCCN. But when comparing it to its historical volatility, Global Partners LP is 5.68 times less risky than BHCCN. It trades about 0.11 of its potential returns per unit of risk. BHCCN 14 15 OCT 30 is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 5,944 in BHCCN 14 15 OCT 30 on September 23, 2024 and sell it today you would earn a total of 1,924 from holding BHCCN 14 15 OCT 30 or generate 32.37% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 52.11% |
Values | Daily Returns |
Global Partners LP vs. BHCCN 14 15 OCT 30
Performance |
Timeline |
Global Partners LP |
BHCCN 14 15 |
Global Partners and BHCCN Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Global Partners and BHCCN
The main advantage of trading using opposite Global Partners and BHCCN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Partners position performs unexpectedly, BHCCN 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 BHCCN will offset losses from the drop in BHCCN's long position.Global Partners vs. Watsco Inc | Global Partners vs. Fastenal Company | Global Partners vs. SiteOne Landscape Supply | Global Partners vs. Ferguson Plc |
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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