Correlation Between Beowulf Mining and Thales
Can any of the company-specific risk be diversified away by investing in both Beowulf Mining and Thales 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 Beowulf Mining and Thales into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Beowulf Mining and Thales, you can compare the effects of market volatilities on Beowulf Mining and Thales 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 Beowulf Mining with a short position of Thales. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beowulf Mining and Thales.
Diversification Opportunities for Beowulf Mining and Thales
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Beowulf and Thales is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Beowulf Mining and Thales in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thales and Beowulf Mining 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 Beowulf Mining are associated (or correlated) with Thales. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thales has no effect on the direction of Beowulf Mining i.e., Beowulf Mining and Thales go up and down completely randomly.
Pair Corralation between Beowulf Mining and Thales
Assuming the 90 days trading horizon Beowulf Mining is expected to under-perform the Thales. In addition to that, Beowulf Mining is 3.41 times more volatile than Thales. It trades about -0.06 of its total potential returns per unit of risk. Thales is currently generating about 0.01 per unit of volatility. If you would invest 13,597 in Thales on September 12, 2024 and sell it today you would earn a total of 193.00 from holding Thales or generate 1.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.72% |
| Values | Daily Returns |
Beowulf Mining vs. Thales
Performance |
| Timeline |
| Beowulf Mining |
| Thales |
Beowulf Mining and Thales Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beowulf Mining and Thales
The main advantage of trading using opposite Beowulf Mining and Thales positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beowulf Mining position performs unexpectedly, Thales 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 Thales will offset losses from the drop in Thales' long position.| Beowulf Mining vs. Verizon Communications | Beowulf Mining vs. Ebro Foods | Beowulf Mining vs. GreenX Metals | Beowulf Mining vs. Jacquet Metal Service |
| Thales vs. Alfa Financial Software | Thales vs. Odyssean Investment Trust | Thales vs. Spotify Technology SA | Thales vs. SMA Solar Technology |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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