Correlation Between Voltronic Power and BH Global
Can any of the company-specific risk be diversified away by investing in both Voltronic Power and BH Global 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 Voltronic Power and BH Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voltronic Power Technology and BH Global, you can compare the effects of market volatilities on Voltronic Power and BH Global 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 Voltronic Power with a short position of BH Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voltronic Power and BH Global.
Diversification Opportunities for Voltronic Power and BH Global
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Voltronic and 911608 is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Voltronic Power Technology and BH Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BH Global and Voltronic Power 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 Voltronic Power Technology are associated (or correlated) with BH Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BH Global has no effect on the direction of Voltronic Power i.e., Voltronic Power and BH Global go up and down completely randomly.
Pair Corralation between Voltronic Power and BH Global
Assuming the 90 days trading horizon Voltronic Power is expected to generate 3.41 times less return on investment than BH Global. But when comparing it to its historical volatility, Voltronic Power Technology is 1.22 times less risky than BH Global. It trades about 0.09 of its potential returns per unit of risk. BH Global is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 317.00 in BH Global on September 13, 2024 and sell it today you would earn a total of 59.00 from holding BH Global or generate 18.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Voltronic Power Technology vs. BH Global
Performance |
| Timeline |
| Voltronic Power Tech |
| BH Global |
Voltronic Power and BH Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voltronic Power and BH Global
The main advantage of trading using opposite Voltronic Power and BH Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voltronic Power position performs unexpectedly, BH Global 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 Global will offset losses from the drop in BH Global's long position.| Voltronic Power vs. Advanced Energy Solution | Voltronic Power vs. Simplo Technology Co | Voltronic Power vs. Amtran Technology Co |
| BH Global vs. Neo Neon Holdings Limited | BH Global vs. Vietnam Manufacturing and | BH Global vs. Medtecs International | BH Global vs. Digital China Holdings |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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