Correlation Between EVS Broadcast and BH Macro
Can any of the company-specific risk be diversified away by investing in both EVS Broadcast and BH Macro 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 EVS Broadcast and BH Macro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EVS Broadcast Equipment and BH Macro Limited, you can compare the effects of market volatilities on EVS Broadcast and BH Macro 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 EVS Broadcast with a short position of BH Macro. Check out your portfolio center. Please also check ongoing floating volatility patterns of EVS Broadcast and BH Macro.
Diversification Opportunities for EVS Broadcast and BH Macro
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between EVS and BHMU is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding EVS Broadcast Equipment and BH Macro Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BH Macro Limited and EVS Broadcast 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 EVS Broadcast Equipment are associated (or correlated) with BH Macro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BH Macro Limited has no effect on the direction of EVS Broadcast i.e., EVS Broadcast and BH Macro go up and down completely randomly.
Pair Corralation between EVS Broadcast and BH Macro
Assuming the 90 days trading horizon EVS Broadcast Equipment is expected to generate 1.16 times more return on investment than BH Macro. However, EVS Broadcast is 1.16 times more volatile than BH Macro Limited. It trades about 0.35 of its potential returns per unit of risk. BH Macro Limited is currently generating about 0.28 per unit of risk. If you would invest 2,735 in EVS Broadcast Equipment on September 13, 2024 and sell it today you would earn a total of 305.00 from holding EVS Broadcast Equipment or generate 11.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
EVS Broadcast Equipment vs. BH Macro Limited
Performance |
| Timeline |
| EVS Broadcast Equipment |
| BH Macro Limited |
EVS Broadcast and BH Macro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EVS Broadcast and BH Macro
The main advantage of trading using opposite EVS Broadcast and BH Macro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EVS Broadcast position performs unexpectedly, BH Macro 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 BH Macro will offset losses from the drop in BH Macro's long position.| EVS Broadcast vs. Induction Healthcare Group | EVS Broadcast vs. Universal Health Services | EVS Broadcast vs. Zoom Video Communications | EVS Broadcast vs. Vitec Software Group |
| BH Macro vs. Iron Mountain | BH Macro vs. Check Point Software | BH Macro vs. Baker Steel Resources | BH Macro vs. Spotify Technology SA |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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