Correlation Between BeWhere Holdings and Electronic Systems
Can any of the company-specific risk be diversified away by investing in both BeWhere Holdings and Electronic Systems 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 BeWhere Holdings and Electronic Systems into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BeWhere Holdings and Electronic Systems Technology, you can compare the effects of market volatilities on BeWhere Holdings and Electronic Systems 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 BeWhere Holdings with a short position of Electronic Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of BeWhere Holdings and Electronic Systems.
Diversification Opportunities for BeWhere Holdings and Electronic Systems
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BeWhere and Electronic is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding BeWhere Holdings and Electronic Systems Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Electronic Systems and BeWhere Holdings 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 BeWhere Holdings are associated (or correlated) with Electronic Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Electronic Systems has no effect on the direction of BeWhere Holdings i.e., BeWhere Holdings and Electronic Systems go up and down completely randomly.
Pair Corralation between BeWhere Holdings and Electronic Systems
Assuming the 90 days horizon BeWhere Holdings is expected to generate 0.46 times more return on investment than Electronic Systems. However, BeWhere Holdings is 2.16 times less risky than Electronic Systems. It trades about -0.01 of its potential returns per unit of risk. Electronic Systems Technology is currently generating about -0.16 per unit of risk. If you would invest 50.00 in BeWhere Holdings on November 3, 2024 and sell it today you would lose (1.00) from holding BeWhere Holdings or give up 2.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
BeWhere Holdings vs. Electronic Systems Technology
Performance |
| Timeline |
| BeWhere Holdings |
| Electronic Systems |
BeWhere Holdings and Electronic Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BeWhere Holdings and Electronic Systems
The main advantage of trading using opposite BeWhere Holdings and Electronic Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BeWhere Holdings position performs unexpectedly, Electronic Systems 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 Electronic Systems will offset losses from the drop in Electronic Systems' long position.| BeWhere Holdings vs. Electronic Systems Technology | BeWhere Holdings vs. Frequency Electronics | BeWhere Holdings vs. Wialan Technologies | BeWhere Holdings vs. TPT Global Tech |
| Electronic Systems vs. BeWhere Holdings | Electronic Systems vs. Frequency Electronics | Electronic Systems vs. Wialan Technologies | Electronic Systems vs. TPT Global Tech |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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