Correlation Between BES Engineering and Airtac International
Can any of the company-specific risk be diversified away by investing in both BES Engineering and Airtac International 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 BES Engineering and Airtac International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BES Engineering Co and Airtac International Group, you can compare the effects of market volatilities on BES Engineering and Airtac International 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 BES Engineering with a short position of Airtac International. Check out your portfolio center. Please also check ongoing floating volatility patterns of BES Engineering and Airtac International.
Diversification Opportunities for BES Engineering and Airtac International
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BES and Airtac is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding BES Engineering Co and Airtac International Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Airtac International and BES Engineering 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 BES Engineering Co are associated (or correlated) with Airtac International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Airtac International has no effect on the direction of BES Engineering i.e., BES Engineering and Airtac International go up and down completely randomly.
Pair Corralation between BES Engineering and Airtac International
Assuming the 90 days trading horizon BES Engineering Co is expected to generate 0.98 times more return on investment than Airtac International. However, BES Engineering Co is 1.02 times less risky than Airtac International. It trades about 0.07 of its potential returns per unit of risk. Airtac International Group is currently generating about -0.25 per unit of risk. If you would invest 1,085 in BES Engineering Co on August 31, 2024 and sell it today you would earn a total of 25.00 from holding BES Engineering Co or generate 2.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
BES Engineering Co vs. Airtac International Group
Performance |
| Timeline |
| BES Engineering |
| Airtac International |
BES Engineering and Airtac International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BES Engineering and Airtac International
The main advantage of trading using opposite BES Engineering and Airtac International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BES Engineering position performs unexpectedly, Airtac International 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 Airtac International will offset losses from the drop in Airtac International's long position.| BES Engineering vs. Hung Sheng Construction | BES Engineering vs. Taiwan Glass Ind | BES Engineering vs. China Petrochemical Development | BES Engineering vs. Taiwan Tea Corp |
| Airtac International vs. BES Engineering Co | Airtac International vs. Continental Holdings Corp | Airtac International vs. Kee Tai Properties | Airtac International vs. Hung Sheng Construction |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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