Correlation Between Bel Fuse and GSR II
Can any of the company-specific risk be diversified away by investing in both Bel Fuse and GSR II 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 Bel Fuse and GSR II into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bel Fuse A and GSR II Meteora, you can compare the effects of market volatilities on Bel Fuse and GSR II 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 Bel Fuse with a short position of GSR II. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bel Fuse and GSR II.
Diversification Opportunities for Bel Fuse and GSR II
Average diversification
The 3 months correlation between Bel and GSR is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Bel Fuse A and GSR II Meteora in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GSR II Meteora and Bel Fuse 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 Bel Fuse A are associated (or correlated) with GSR II. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GSR II Meteora has no effect on the direction of Bel Fuse i.e., Bel Fuse and GSR II go up and down completely randomly.
Pair Corralation between Bel Fuse and GSR II
If you would invest 8,446 in Bel Fuse A on September 1, 2024 and sell it today you would earn a total of 1,220 from holding Bel Fuse A or generate 14.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 0.79% |
| Values | Daily Returns |
Bel Fuse A vs. GSR II Meteora
Performance |
| Timeline |
| Bel Fuse A |
| GSR II Meteora |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bel Fuse and GSR II Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bel Fuse and GSR II
The main advantage of trading using opposite Bel Fuse and GSR II positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bel Fuse position performs unexpectedly, GSR II 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 GSR II will offset losses from the drop in GSR II's long position.| Bel Fuse vs. Richardson Electronics | Bel Fuse vs. LSI Industries | Bel Fuse vs. Benchmark Electronics | Bel Fuse vs. Plexus Corp |
| GSR II vs. Figs Inc | GSR II vs. Shoe Carnival | GSR II vs. Four Seasons Education | GSR II vs. Under Armour C |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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