Correlation Between BCP Investment and MSC Industrial

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

By analyzing existing cross correlation between BCP Investment Corp and MSC Industrial Direct, you can compare the effects of market volatilities on BCP Investment and MSC Industrial 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 BCP Investment with a short position of MSC Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of BCP Investment and MSC Industrial.

Diversification Opportunities for BCP Investment and MSC Industrial

-0.12

Correlation Coefficient

BCP Investment  MSC Industrial

Good diversification

The 3 months correlation between BCP and MSC is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding BCP Investment Corp and MSC Industrial Direct in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MSC Industrial Direct and BCP Investment 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 BCP Investment Corp are associated (or correlated) with MSC Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MSC Industrial Direct has no effect on the direction of BCP Investment i.e., BCP Investment and MSC Industrial go up and down completely randomly.

Pair Corralation between BCP Investment and MSC Industrial

Given the investment horizon of 90 days BCP Investment Corp is expected to generate 0.92 times more return on investment than MSC Industrial. However, BCP Investment Corp is 1.08 times less risky than MSC Industrial. It trades about 0.12 of its potential returns per unit of risk. MSC Industrial Direct is currently generating about -0.08 per unit of risk. If you would invest  1,176  in BCP Investment Corp on September 9, 2025 and sell it today you would earn a total of  133.00  from holding BCP Investment Corp or generate 11.31% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

BCP Investment Corp  vs.  MSC Industrial Direct

BCP Investment Corp

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in BCP Investment Corp are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain forward indicators, BCP Investment may actually be approaching a critical reversion point that can send shares even higher in January 2026.

MSC Industrial Direct

Risk-Adjusted Performance

Weakest

Over the last 90 days MSC Industrial Direct has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest conflicting performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Pair Trading with BCP Investment and MSC Industrial

The main advantage of trading using opposite BCP Investment and MSC Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BCP Investment position performs unexpectedly, MSC Industrial 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 MSC Industrial will offset losses from the drop in MSC Industrial's long position.

The idea behind BCP Investment Corp and MSC Industrial Direct 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.

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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.