Correlation Between Bel Fuse and 842400HS5
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By analyzing existing cross correlation between Bel Fuse A and EIX 585 01 NOV 27, you can compare the effects of market volatilities on Bel Fuse and 842400HS5 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 842400HS5. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bel Fuse and 842400HS5.
Diversification Opportunities for Bel Fuse and 842400HS5
Significant diversification
The 3 months correlation between Bel and 842400HS5 is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Bel Fuse A and EIX 585 01 NOV 27 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EIX 585 01 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 842400HS5. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EIX 585 01 has no effect on the direction of Bel Fuse i.e., Bel Fuse and 842400HS5 go up and down completely randomly.
Pair Corralation between Bel Fuse and 842400HS5
Assuming the 90 days horizon Bel Fuse A is expected to generate 6.98 times more return on investment than 842400HS5. However, Bel Fuse is 6.98 times more volatile than EIX 585 01 NOV 27. It trades about 0.09 of its potential returns per unit of risk. EIX 585 01 NOV 27 is currently generating about -0.05 per unit of risk. If you would invest 9,801 in Bel Fuse A on September 5, 2024 and sell it today you would earn a total of 380.00 from holding Bel Fuse A or generate 3.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
Bel Fuse A vs. EIX 585 01 NOV 27
Performance |
| Timeline |
| Bel Fuse A |
| EIX 585 01 |
Bel Fuse and 842400HS5 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bel Fuse and 842400HS5
The main advantage of trading using opposite Bel Fuse and 842400HS5 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bel Fuse position performs unexpectedly, 842400HS5 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 842400HS5 will offset losses from the drop in 842400HS5'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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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