Correlation Between Bel Fuse and ORACLE
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By analyzing existing cross correlation between Bel Fuse A and ORACLE PORATION, you can compare the effects of market volatilities on Bel Fuse and ORACLE 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 ORACLE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bel Fuse and ORACLE.
Diversification Opportunities for Bel Fuse and ORACLE
Very good diversification
The 3 months correlation between Bel and ORACLE is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Bel Fuse A and ORACLE PORATION in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ORACLE PORATION 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 ORACLE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ORACLE PORATION has no effect on the direction of Bel Fuse i.e., Bel Fuse and ORACLE go up and down completely randomly.
Pair Corralation between Bel Fuse and ORACLE
Assuming the 90 days horizon Bel Fuse A is expected to generate 3.13 times more return on investment than ORACLE. However, Bel Fuse is 3.13 times more volatile than ORACLE PORATION. It trades about 0.09 of its potential returns per unit of risk. ORACLE PORATION is currently generating about -0.01 per unit of risk. If you would invest 3,370 in Bel Fuse A on September 3, 2024 and sell it today you would earn a total of 6,296 from holding Bel Fuse A or generate 186.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Bel Fuse A vs. ORACLE PORATION
Performance |
| Timeline |
| Bel Fuse A |
| ORACLE PORATION |
Bel Fuse and ORACLE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bel Fuse and ORACLE
The main advantage of trading using opposite Bel Fuse and ORACLE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bel Fuse position performs unexpectedly, ORACLE 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 ORACLE will offset losses from the drop in ORACLE's long position.| Bel Fuse vs. Richardson Electronics | Bel Fuse vs. LSI Industries | Bel Fuse vs. Benchmark Electronics | Bel Fuse vs. Plexus Corp |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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