Correlation Between FlyExclusive, and BGC

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

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

Diversification Opportunities for FlyExclusive, and BGC

-0.44

Correlation Coefficient

FlyExclusive,  BGC

Very good diversification

The 3 months correlation between FlyExclusive, and BGC is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding flyExclusive, and BGC Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BGC Group and FlyExclusive, 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 flyExclusive, are associated (or correlated) with BGC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BGC Group has no effect on the direction of FlyExclusive, i.e., FlyExclusive, and BGC go up and down completely randomly.

Pair Corralation between FlyExclusive, and BGC

Given the investment horizon of 90 days flyExclusive, is expected to under-perform the BGC. In addition to that, FlyExclusive, is 1.61 times more volatile than BGC Group. It trades about -0.04 of its total potential returns per unit of risk. BGC Group is currently generating about 0.0 per unit of volatility. If you would invest  927.00  in BGC Group on September 27, 2024 and sell it today you would lose (10.00) from holding BGC Group or give up 1.08% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

flyExclusive,  vs.  BGC Group

flyExclusive,

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days flyExclusive, has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

BGC Group

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with FlyExclusive, and BGC

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

The idea behind flyExclusive, and BGC Group 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.