Correlation Between Beam Global and AER Energy
Can any of the company-specific risk be diversified away by investing in both Beam Global and AER Energy 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 Beam Global and AER Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Beam Global and AER Energy Resources, you can compare the effects of market volatilities on Beam Global and AER Energy 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 Beam Global with a short position of AER Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beam Global and AER Energy.
Diversification Opportunities for Beam Global and AER Energy
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Beam and AER is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Beam Global and AER Energy Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AER Energy Resources and Beam Global 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 Beam Global are associated (or correlated) with AER Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AER Energy Resources has no effect on the direction of Beam Global i.e., Beam Global and AER Energy go up and down completely randomly.
Pair Corralation between Beam Global and AER Energy
If you would invest 0.00 in AER Energy Resources on November 27, 2024 and sell it today you would earn a total of 0.00 from holding AER Energy Resources or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beam Global vs. AER Energy Resources
Performance |
| Timeline |
| Beam Global |
| AER Energy Resources |
Beam Global and AER Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beam Global and AER Energy
The main advantage of trading using opposite Beam Global and AER Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beam Global position performs unexpectedly, AER Energy 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 AER Energy will offset losses from the drop in AER Energy's long position.| Beam Global vs. Sunrun Inc | Beam Global vs. Emeren Group | Beam Global vs. Sunnova Energy International | Beam Global vs. Maxeon Solar Technologies |
| AER Energy vs. Caduceus Software Systems | AER Energy vs. North Springs Resources | AER Energy vs. Nyxio Tech Corp | AER Energy vs. Access Power Co |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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