Correlation Between Scully Royalty and BGC
Can any of the company-specific risk be diversified away by investing in both Scully Royalty 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 Scully Royalty and BGC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Scully Royalty and BGC Group, you can compare the effects of market volatilities on Scully Royalty 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 Scully Royalty with a short position of BGC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scully Royalty and BGC.
Diversification Opportunities for Scully Royalty and BGC
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Scully and BGC is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Scully Royalty and BGC Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BGC Group and Scully Royalty 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 Scully Royalty 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 Scully Royalty i.e., Scully Royalty and BGC go up and down completely randomly.
Pair Corralation between Scully Royalty and BGC
Considering the 90-day investment horizon Scully Royalty is expected to generate 1.71 times more return on investment than BGC. However, Scully Royalty is 1.71 times more volatile than BGC Group. It trades about -0.03 of its potential returns per unit of risk. BGC Group is currently generating about -0.06 per unit of risk. If you would invest 615.00 in Scully Royalty on July 22, 2025 and sell it today you would lose (49.00) from holding Scully Royalty or give up 7.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Scully Royalty vs. BGC Group
Performance |
| Timeline |
| Scully Royalty |
| BGC Group |
Scully Royalty and BGC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scully Royalty and BGC
The main advantage of trading using opposite Scully Royalty and BGC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scully Royalty 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.| Scully Royalty vs. Dominari Holdings | Scully Royalty vs. Prairie Operating Co | Scully Royalty vs. Bitcoin Depot | Scully Royalty vs. Great Elm Capital |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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