Correlation Between BROADWIND ENRGY and Corporate Office
Can any of the company-specific risk be diversified away by investing in both BROADWIND ENRGY and Corporate Office 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 Corporate Office into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BROADWIND ENRGY and Corporate Office Properties, you can compare the effects of market volatilities on BROADWIND ENRGY and Corporate Office 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 Corporate Office. Check out your portfolio center. Please also check ongoing floating volatility patterns of BROADWIND ENRGY and Corporate Office.
Diversification Opportunities for BROADWIND ENRGY and Corporate Office
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between BROADWIND and Corporate is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding BROADWIND ENRGY and Corporate Office Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Corporate Office Pro 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 Corporate Office. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Corporate Office Pro has no effect on the direction of BROADWIND ENRGY i.e., BROADWIND ENRGY and Corporate Office go up and down completely randomly.
Pair Corralation between BROADWIND ENRGY and Corporate Office
Assuming the 90 days trading horizon BROADWIND ENRGY is expected to generate 2.56 times more return on investment than Corporate Office. However, BROADWIND ENRGY is 2.56 times more volatile than Corporate Office Properties. It trades about 0.2 of its potential returns per unit of risk. Corporate Office Properties is currently generating about -0.23 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 Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BROADWIND ENRGY vs. Corporate Office Properties
Performance |
| Timeline |
| BROADWIND ENRGY |
| Corporate Office Pro |
BROADWIND ENRGY and Corporate Office Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BROADWIND ENRGY and Corporate Office
The main advantage of trading using opposite BROADWIND ENRGY and Corporate Office positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BROADWIND ENRGY position performs unexpectedly, Corporate Office 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 Corporate Office will offset losses from the drop in Corporate Office'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 |
| Corporate Office vs. Benchmark Electronics | Corporate Office vs. Tsingtao Brewery | Corporate Office vs. Thai Beverage Public | Corporate Office vs. Nanjing Panda Electronics |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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