Two Equities Correlation Analysis
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BGS
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This model provides you with a quick lookup of cross correlation between two equities. Please specify two instruments to run the correlation.
Diversification Opportunities for BG Foods and NYSE Composite
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BGS and NYSE is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding BG Foods and NYSE Composite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NYSE Composite and BG Foods 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 BG Foods are associated (or correlated) with NYSE Composite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NYSE Composite has no effect on the direction of BG Foods i.e., BG Foods and NYSE Composite go up and down completely randomly.
Pair Corralation between BG Foods and NYSE Composite
Considering the 90-day investment horizon BG Foods is expected to generate 5.67 times more return on investment than NYSE Composite. However, BG Foods is 5.67 times more volatile than NYSE Composite. It trades about 0.06 of its potential returns per unit of risk. NYSE Composite is currently generating about 0.13 per unit of risk. If you would invest 978.00 in BG Foods on January 24, 2024 and sell it today you would earn a total of 98.00 from holding BG Foods or generate 10.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BG Foods vs. NYSE Composite
Performance |
| Timeline |
BG Foods and NYSE Composite Volatility Contrast
Predicted Return Density |
| Returns |
BG Foods
Pair trading matchups for BG Foods
NYSE Composite
Pair trading matchups for NYSE Composite
Pair Trading with BG Foods and NYSE Composite
The main advantage of trading using opposite BG Foods and NYSE Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BG Foods position performs unexpectedly, NYSE Composite 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 NYSE Composite will offset losses from the drop in NYSE Composite's long position.| BG Foods vs. Bunge Limited | BG Foods vs. Archer Daniels Midland | BG Foods vs. Fresh Del Monte | BG Foods vs. Limoneira Co |
| NYSE Composite vs. The Wendys Co | NYSE Composite vs. Dine Brands Global | NYSE Composite vs. BJs Restaurants | NYSE Composite vs. Rave Restaurant Group |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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