Correlation Between BGC Partners and Alphabet
Can any of the company-specific risk be diversified away by investing in both BGC Partners and Alphabet 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 BGC Partners and Alphabet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BGC Partners and Alphabet Inc Class C, you can compare the effects of market volatilities on BGC Partners and Alphabet 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 BGC Partners with a short position of Alphabet. Check out your portfolio center. Please also check ongoing floating volatility patterns of BGC Partners and Alphabet.
Diversification Opportunities for BGC Partners and Alphabet
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between BGC and Alphabet is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding BGC Partners and Alphabet Inc Class C in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alphabet Class C and BGC Partners 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 BGC Partners are associated (or correlated) with Alphabet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alphabet Class C has no effect on the direction of BGC Partners i.e., BGC Partners and Alphabet go up and down completely randomly.
Pair Corralation between BGC Partners and Alphabet
If you would invest 14,968 in Alphabet Inc Class C on January 20, 2024 and sell it today you would earn a total of 604.00 from holding Alphabet Inc Class C or generate 4.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
BGC Partners vs. Alphabet Inc Class C
Performance |
| Timeline |
| BGC Partners |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Alphabet Class C |
BGC Partners and Alphabet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BGC Partners and Alphabet
The main advantage of trading using opposite BGC Partners and Alphabet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BGC Partners position performs unexpectedly, Alphabet 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 Alphabet will offset losses from the drop in Alphabet's long position.| BGC Partners vs. Newmark Group | BGC Partners vs. Consolidated Communications | BGC Partners vs. Brookline Bancorp | BGC Partners vs. SLR Investment 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 Stocks Directory module to find actively traded stocks across global markets.
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