Correlation Between BROADWIND ENRGY and Focus Home
Can any of the company-specific risk be diversified away by investing in both BROADWIND ENRGY and Focus Home 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 BROADWIND ENRGY and Focus Home into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BROADWIND ENRGY and Focus Home Interactive, you can compare the effects of market volatilities on BROADWIND ENRGY and Focus Home 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 BROADWIND ENRGY with a short position of Focus Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of BROADWIND ENRGY and Focus Home.
Diversification Opportunities for BROADWIND ENRGY and Focus Home
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BROADWIND and Focus is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding BROADWIND ENRGY and Focus Home Interactive in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Focus Home Interactive and BROADWIND ENRGY 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 BROADWIND ENRGY are associated (or correlated) with Focus Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Focus Home Interactive has no effect on the direction of BROADWIND ENRGY i.e., BROADWIND ENRGY and Focus Home go up and down completely randomly.
Pair Corralation between BROADWIND ENRGY and Focus Home
Assuming the 90 days trading horizon BROADWIND ENRGY is expected to generate 0.83 times more return on investment than Focus Home. However, BROADWIND ENRGY is 1.21 times less risky than Focus Home. It trades about 0.2 of its potential returns per unit of risk. Focus Home Interactive is currently generating about 0.12 per unit of risk. If you would invest 168.00 in BROADWIND ENRGY on October 11, 2024 and sell it today you would earn a total of 20.00 from holding BROADWIND ENRGY or generate 11.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BROADWIND ENRGY vs. Focus Home Interactive
Performance |
| Timeline |
| BROADWIND ENRGY |
| Focus Home Interactive |
BROADWIND ENRGY and Focus Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BROADWIND ENRGY and Focus Home
The main advantage of trading using opposite BROADWIND ENRGY and Focus Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BROADWIND ENRGY position performs unexpectedly, Focus Home 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 Focus Home will offset losses from the drop in Focus Home's long position.| BROADWIND ENRGY vs. Nok Airlines PCL | BROADWIND ENRGY vs. InterContinental Hotels Group | BROADWIND ENRGY vs. Singapore Airlines Limited | BROADWIND ENRGY vs. Xenia Hotels Resorts |
| Focus Home vs. AWILCO DRILLING PLC | Focus Home vs. BORR DRILLING NEW | Focus Home vs. Neinor Homes SA | Focus Home vs. American Homes 4 |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |