Correlation Between Beam Global and Polar Power
Can any of the company-specific risk be diversified away by investing in both Beam Global and Polar Power 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 Polar Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Beam Global and Polar Power, you can compare the effects of market volatilities on Beam Global and Polar Power 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 Polar Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beam Global and Polar Power.
Diversification Opportunities for Beam Global and Polar Power
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Beam and Polar is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Beam Global and Polar Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Polar Power 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 Polar Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Polar Power has no effect on the direction of Beam Global i.e., Beam Global and Polar Power go up and down completely randomly.
Pair Corralation between Beam Global and Polar Power
Given the investment horizon of 90 days Beam Global is expected to under-perform the Polar Power. In addition to that, Beam Global is 1.11 times more volatile than Polar Power. It trades about -0.08 of its total potential returns per unit of risk. Polar Power is currently generating about 0.06 per unit of volatility. If you would invest 300.00 in Polar Power on October 20, 2024 and sell it today you would earn a total of 27.00 from holding Polar Power or generate 9.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beam Global vs. Polar Power
Performance |
| Timeline |
| Beam Global |
| Polar Power |
Beam Global and Polar Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beam Global and Polar Power
The main advantage of trading using opposite Beam Global and Polar Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beam Global position performs unexpectedly, Polar Power 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 Polar Power will offset losses from the drop in Polar Power'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 |
| Polar Power vs. CBAK Energy Technology | Polar Power vs. Ocean Power Technologies | Polar Power vs. Enersys | Polar Power vs. Flux Power 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..
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |