Correlation Between GFPT Public and BG Container

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

By analyzing existing cross correlation between GFPT Public and BG Container Glass, you can compare the effects of market volatilities on GFPT Public and BG Container 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 GFPT Public with a short position of BG Container. Check out your portfolio center. Please also check ongoing floating volatility patterns of GFPT Public and BG Container.

Diversification Opportunities for GFPT Public and BG Container

-0.77

Correlation Coefficient

GFPT Public  BG Container

Pay attention - limited upside

The 3 months correlation between GFPT and BGC is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding GFPT Public and BG Container Glass in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BG Container Glass and GFPT Public 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 GFPT Public are associated (or correlated) with BG Container. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BG Container Glass has no effect on the direction of GFPT Public i.e., GFPT Public and BG Container go up and down completely randomly.

Pair Corralation between GFPT Public and BG Container

Assuming the 90 days trading horizon GFPT Public is expected to under-perform the BG Container. In addition to that, GFPT Public is 1.02 times more volatile than BG Container Glass. It trades about -0.13 of its total potential returns per unit of risk. BG Container Glass is currently generating about 0.24 per unit of volatility. If you would invest  640.00  in BG Container Glass on September 13, 2024 and sell it today you would earn a total of  140.00  from holding BG Container Glass or generate 21.88% return on investment over 90 days.

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

GFPT Public  vs.  BG Container Glass

GFPT Public

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days GFPT Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's forward-looking signals remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

BG Container Glass

Risk-Adjusted Performance

19 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in BG Container Glass are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting fundamental indicators, BG Container disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with GFPT Public and BG Container

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

The idea behind GFPT Public and BG Container Glass 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..