Correlation Between Hailiang Education and BG Foods
Can any of the company-specific risk be diversified away by investing in both Hailiang Education and BG Foods 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 Hailiang Education and BG Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hailiang Education Group and BG Foods, you can compare the effects of market volatilities on Hailiang Education and BG Foods 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 Hailiang Education with a short position of BG Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hailiang Education and BG Foods.
Diversification Opportunities for Hailiang Education and BG Foods
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hailiang and BGS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hailiang Education Group and BG Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BG Foods and Hailiang Education 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 Hailiang Education Group are associated (or correlated) with BG Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BG Foods has no effect on the direction of Hailiang Education i.e., Hailiang Education and BG Foods go up and down completely randomly.
Pair Corralation between Hailiang Education and BG Foods
If you would invest (100.00) in Hailiang Education Group on January 20, 2024 and sell it today you would earn a total of 100.00 from holding Hailiang Education Group 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 |
Hailiang Education Group vs. BG Foods
Performance |
| Timeline |
| Hailiang Education |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| BG Foods |
Hailiang Education and BG Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hailiang Education and BG Foods
The main advantage of trading using opposite Hailiang Education and BG Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hailiang Education position performs unexpectedly, BG Foods 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 Foods will offset losses from the drop in BG Foods' long position.| Hailiang Education vs. Employers Holdings | Hailiang Education vs. NiSource | Hailiang Education vs. Brp Group | Hailiang Education vs. CenterPoint Energy |
| BG Foods vs. Green Globe International | BG Foods vs. Greenlane Holdings | BG Foods vs. 22nd Century Group | BG Foods vs. 1606 Corp |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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