Correlation Between American Assets and Bgc Partners

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Can any of the company-specific risk be diversified away by investing in both American Assets and Bgc Partners 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 American Assets and Bgc Partners into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Assets Trust and Bgc Partners Cl, you can compare the effects of market volatilities on American Assets and Bgc Partners 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 American Assets with a short position of Bgc Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Assets and Bgc Partners.

Diversification Opportunities for American Assets and Bgc Partners

-0.28
  Correlation Coefficient

Very good diversification

The 3 months correlation between American and Bgc Partners is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding American Assets Trust and Bgc Partners Cl in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bgc Partners Cl and American Assets 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 American Assets Trust are associated (or correlated) with Bgc Partners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bgc Partners Cl has no effect on the direction of American Assets i.e., American Assets and Bgc Partners go up and down completely randomly.

Pair Corralation between American Assets and Bgc Partners

Considering the 90-day investment horizon American Assets Trust is expected to under-perform the Bgc Partners. But the stock apears to be less risky and, when comparing its historical volatility, American Assets Trust is 1.64 times less risky than Bgc Partners. The stock trades about -0.46 of its potential returns per unit of risk. The Bgc Partners Cl is currently generating about -0.28 of returns per unit of risk over similar time horizon. If you would invest  406.00  in Bgc Partners Cl on June 29, 2022 and sell it today you would lose (55.00)  from holding Bgc Partners Cl or give up 13.55% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

American Assets Trust  vs.  Bgc Partners Cl

 Performance (%) 
       Timeline  
American Assets Trust 
American Performance
0 of 100
Over the last 90 days American Assets Trust has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in October 2022. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

American Price Channel

Bgc Partners Cl 
Bgc Partners Performance
2 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Bgc Partners Cl are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy fundamental indicators, Bgc Partners is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the insiders.

Bgc Partners Price Channel

American Assets and Bgc Partners Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with American Assets and Bgc Partners

The main advantage of trading using opposite American Assets and Bgc Partners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Assets position performs unexpectedly, Bgc Partners 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 Partners will offset losses from the drop in Bgc Partners' long position.
American Assets vs. Kibush Capital Corp
The idea behind American Assets Trust and Bgc Partners Cl 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.
Bgc Partners vs. Clearwater Paper 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.

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