Correlation Between AiMedia Technologies and Bell Financial
Can any of the company-specific risk be diversified away by investing in both AiMedia Technologies and Bell Financial 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 AiMedia Technologies and Bell Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AiMedia Technologies and Bell Financial Group, you can compare the effects of market volatilities on AiMedia Technologies and Bell Financial 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 AiMedia Technologies with a short position of Bell Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of AiMedia Technologies and Bell Financial.
Diversification Opportunities for AiMedia Technologies and Bell Financial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AiMedia and Bell is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AiMedia Technologies and Bell Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bell Financial Group and AiMedia Technologies 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 AiMedia Technologies are associated (or correlated) with Bell Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bell Financial Group has no effect on the direction of AiMedia Technologies i.e., AiMedia Technologies and Bell Financial go up and down completely randomly.
Pair Corralation between AiMedia Technologies and Bell Financial
Assuming the 90 days trading horizon AiMedia Technologies is expected to under-perform the Bell Financial. In addition to that, AiMedia Technologies is 3.71 times more volatile than Bell Financial Group. It trades about -0.2 of its total potential returns per unit of risk. Bell Financial Group is currently generating about 0.08 per unit of volatility. If you would invest 134.00 in Bell Financial Group on November 6, 2024 and sell it today you would earn a total of 2.00 from holding Bell Financial Group or generate 1.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AiMedia Technologies vs. Bell Financial Group
Performance |
| Timeline |
| AiMedia Technologies |
| Bell Financial Group |
AiMedia Technologies and Bell Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AiMedia Technologies and Bell Financial
The main advantage of trading using opposite AiMedia Technologies and Bell Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AiMedia Technologies position performs unexpectedly, Bell Financial 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 Bell Financial will offset losses from the drop in Bell Financial's long position.| AiMedia Technologies vs. Hansen Technologies | AiMedia Technologies vs. Beam Communications Holdings | AiMedia Technologies vs. Ambertech | AiMedia Technologies vs. Air New Zealand |
| Bell Financial vs. Beam Communications Holdings | Bell Financial vs. Hutchison Telecommunications | Bell Financial vs. Aristocrat Leisure | Bell Financial vs. Bailador Technology Invest |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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