Correlation Between BSAE and HP
Can any of the company-specific risk be diversified away by investing in both BSAE and HP 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 BSAE and HP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BSAE and HP Inc, you can compare the effects of market volatilities on BSAE and HP 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 BSAE with a short position of HP. Check out your portfolio center. Please also check ongoing floating volatility patterns of BSAE and HP.
Diversification Opportunities for BSAE and HP
Pay attention - limited upside
The 3 months correlation between BSAE and HP is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BSAE and HP Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HP Inc and BSAE 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 BSAE are associated (or correlated) with HP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HP Inc has no effect on the direction of BSAE i.e., BSAE and HP go up and down completely randomly.
Pair Corralation between BSAE and HP
If you would invest (100.00) in BSAE on December 30, 2023 and sell it today you would earn a total of 100.00 from holding BSAE 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 |
BSAE vs. HP Inc
Performance |
Timeline |
BSAE |
Risk-Adjusted Performance
0 of 100
Low | High |
Very Weak
HP Inc |
BSAE and HP Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with BSAE and HP
The main advantage of trading using opposite BSAE and HP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BSAE position performs unexpectedly, HP 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 HP will offset losses from the drop in HP's long position.BSAE vs. Invesco Emerging Markets | BSAE vs. VanEck Emerging Markets | BSAE vs. IShares JP Morgan | BSAE vs. Bondbloxx ETF Trust |
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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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