Correlation Between BeWhere Holdings and Frequency Electronics
Can any of the company-specific risk be diversified away by investing in both BeWhere Holdings and Frequency Electronics 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 Frequency Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BeWhere Holdings and Frequency Electronics, you can compare the effects of market volatilities on BeWhere Holdings and Frequency Electronics 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 Frequency Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of BeWhere Holdings and Frequency Electronics.
Diversification Opportunities for BeWhere Holdings and Frequency Electronics
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BeWhere and Frequency is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding BeWhere Holdings and Frequency Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Frequency Electronics 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 Frequency Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Frequency Electronics has no effect on the direction of BeWhere Holdings i.e., BeWhere Holdings and Frequency Electronics go up and down completely randomly.
Pair Corralation between BeWhere Holdings and Frequency Electronics
Assuming the 90 days horizon BeWhere Holdings is expected to generate 1.25 times more return on investment than Frequency Electronics. However, BeWhere Holdings is 1.25 times more volatile than Frequency Electronics. It trades about 0.09 of its potential returns per unit of risk. Frequency Electronics is currently generating about 0.07 per unit of risk. If you would invest 23.00 in BeWhere Holdings on November 4, 2024 and sell it today you would earn a total of 26.00 from holding BeWhere Holdings or generate 113.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
BeWhere Holdings vs. Frequency Electronics
Performance |
| Timeline |
| BeWhere Holdings |
| Frequency Electronics |
BeWhere Holdings and Frequency Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BeWhere Holdings and Frequency Electronics
The main advantage of trading using opposite BeWhere Holdings and Frequency Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BeWhere Holdings position performs unexpectedly, Frequency Electronics 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 Frequency Electronics will offset losses from the drop in Frequency Electronics' long position.| BeWhere Holdings vs. Electronic Systems Technology | BeWhere Holdings vs. Frequency Electronics | BeWhere Holdings vs. Wialan Technologies | BeWhere Holdings vs. TPT Global Tech |
| Frequency Electronics vs. BK Technologies | Frequency Electronics vs. Actelis Networks | Frequency Electronics vs. Lantronix | Frequency Electronics vs. KVH Industries |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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