Correlation Between Beneficient Warrant and Celestica
Can any of the company-specific risk be diversified away by investing in both Beneficient Warrant and Celestica 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 Beneficient Warrant and Celestica into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Beneficient Warrant and Celestica, you can compare the effects of market volatilities on Beneficient Warrant and Celestica 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 Beneficient Warrant with a short position of Celestica. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beneficient Warrant and Celestica.
Diversification Opportunities for Beneficient Warrant and Celestica
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Beneficient and Celestica is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Beneficient Warrant and Celestica in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celestica and Beneficient Warrant 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 Beneficient Warrant are associated (or correlated) with Celestica. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Celestica has no effect on the direction of Beneficient Warrant i.e., Beneficient Warrant and Celestica go up and down completely randomly.
Pair Corralation between Beneficient Warrant and Celestica
Assuming the 90 days horizon Beneficient Warrant is expected to generate 4.21 times more return on investment than Celestica. However, Beneficient Warrant is 4.21 times more volatile than Celestica. It trades about 0.16 of its potential returns per unit of risk. Celestica is currently generating about 0.18 per unit of risk. If you would invest 0.69 in Beneficient Warrant on September 14, 2024 and sell it today you would earn a total of 0.20 from holding Beneficient Warrant or generate 28.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beneficient Warrant vs. Celestica
Performance |
| Timeline |
| Beneficient Warrant |
| Celestica |
Beneficient Warrant and Celestica Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beneficient Warrant and Celestica
The main advantage of trading using opposite Beneficient Warrant and Celestica positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beneficient Warrant position performs unexpectedly, Celestica 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 Celestica will offset losses from the drop in Celestica's long position.| Beneficient Warrant vs. Visa Class A | Beneficient Warrant vs. Diamond Hill Investment | Beneficient Warrant vs. Distoken Acquisition | Beneficient Warrant vs. AllianceBernstein Holding LP |
| Celestica vs. Plexus Corp | Celestica vs. Benchmark Electronics | Celestica vs. Flex | Celestica vs. Jabil Circuit |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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