Correlation Between Bel Fuse and MicroCloud Hologram
Can any of the company-specific risk be diversified away by investing in both Bel Fuse and MicroCloud Hologram 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 MicroCloud Hologram 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 MicroCloud Hologram, you can compare the effects of market volatilities on Bel Fuse and MicroCloud Hologram 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 MicroCloud Hologram. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bel Fuse and MicroCloud Hologram.
Diversification Opportunities for Bel Fuse and MicroCloud Hologram
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Bel and MicroCloud is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Bel Fuse A and MicroCloud Hologram in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MicroCloud Hologram 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 MicroCloud Hologram. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MicroCloud Hologram has no effect on the direction of Bel Fuse i.e., Bel Fuse and MicroCloud Hologram go up and down completely randomly.
Pair Corralation between Bel Fuse and MicroCloud Hologram
Assuming the 90 days horizon Bel Fuse A is expected to under-perform the MicroCloud Hologram. But the stock apears to be less risky and, when comparing its historical volatility, Bel Fuse A is 9.76 times less risky than MicroCloud Hologram. The stock trades about -0.12 of its potential returns per unit of risk. The MicroCloud Hologram is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 258.00 in MicroCloud Hologram on November 6, 2024 and sell it today you would lose (99.00) from holding MicroCloud Hologram or give up 38.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bel Fuse A vs. MicroCloud Hologram
Performance |
| Timeline |
| Bel Fuse A |
| MicroCloud Hologram |
Bel Fuse and MicroCloud Hologram Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bel Fuse and MicroCloud Hologram
The main advantage of trading using opposite Bel Fuse and MicroCloud Hologram positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bel Fuse position performs unexpectedly, MicroCloud Hologram 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 MicroCloud Hologram will offset losses from the drop in MicroCloud Hologram's long position.| Bel Fuse vs. Richardson Electronics | Bel Fuse vs. LSI Industries | Bel Fuse vs. Benchmark Electronics | Bel Fuse vs. Plexus Corp |
| MicroCloud Hologram vs. Plexus Corp | MicroCloud Hologram vs. OSI Systems | MicroCloud Hologram vs. CTS Corporation | MicroCloud Hologram vs. Benchmark 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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