Correlation Between BES Engineering and Excel Cell
Can any of the company-specific risk be diversified away by investing in both BES Engineering and Excel Cell 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 Excel Cell 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 Excel Cell Electronic, you can compare the effects of market volatilities on BES Engineering and Excel Cell 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 Excel Cell. Check out your portfolio center. Please also check ongoing floating volatility patterns of BES Engineering and Excel Cell.
Diversification Opportunities for BES Engineering and Excel Cell
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between BES and Excel is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding BES Engineering Co and Excel Cell Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Excel Cell Electronic 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 Excel Cell. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Excel Cell Electronic has no effect on the direction of BES Engineering i.e., BES Engineering and Excel Cell go up and down completely randomly.
Pair Corralation between BES Engineering and Excel Cell
Assuming the 90 days trading horizon BES Engineering Co is expected to under-perform the Excel Cell. In addition to that, BES Engineering is 1.52 times more volatile than Excel Cell Electronic. It trades about -0.14 of its total potential returns per unit of risk. Excel Cell Electronic is currently generating about -0.08 per unit of volatility. If you would invest 2,550 in Excel Cell Electronic on September 3, 2024 and sell it today you would lose (375.00) from holding Excel Cell Electronic or give up 14.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BES Engineering Co vs. Excel Cell Electronic
Performance |
| Timeline |
| BES Engineering |
| Excel Cell Electronic |
BES Engineering and Excel Cell Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BES Engineering and Excel Cell
The main advantage of trading using opposite BES Engineering and Excel Cell positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BES Engineering position performs unexpectedly, Excel Cell 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 Excel Cell will offset losses from the drop in Excel Cell'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 |
| Excel Cell vs. Siward Crystal Technology | Excel Cell vs. Zinwell | Excel Cell vs. G Shank Enterprise Co | Excel Cell vs. Gem Terminal Industry |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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