Correlation Between CaliberCos and BGC

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

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

Diversification Opportunities for CaliberCos and BGC

-0.04

Correlation Coefficient

CaliberCos  BGC

Good diversification

The 3 months correlation between CaliberCos and BGC is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding CaliberCos Class A and BGC Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BGC Group and CaliberCos 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 CaliberCos Class A 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 CaliberCos i.e., CaliberCos and BGC go up and down completely randomly.

Pair Corralation between CaliberCos and BGC

Considering the 90-day investment horizon CaliberCos Class A is expected to generate 32.5 times more return on investment than BGC. However, CaliberCos is 32.5 times more volatile than BGC Group. It trades about 0.08 of its potential returns per unit of risk. BGC Group is currently generating about -0.08 per unit of risk. If you would invest  337.00  in CaliberCos Class A on August 5, 2025 and sell it today you would lose (54.00) from holding CaliberCos Class A or give up 16.02% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.46%
Values	Daily Returns

CaliberCos Class A  vs.  BGC Group

CaliberCos Class A

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in CaliberCos Class A are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile basic indicators, CaliberCos exhibited solid returns over the last few months and may actually be approaching a breakup point.

BGC Group

Risk-Adjusted Performance

Weakest

Over the last 90 days BGC Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's technical and fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with CaliberCos and BGC

The main advantage of trading using opposite CaliberCos and BGC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CaliberCos 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 CaliberCos Class A 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.

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 AI Portfolio Prophet module to use AI to generate optimal portfolios and find profitable investment opportunities.