Correlation Between BeWhere Holdings and Wialan Technologies
Can any of the company-specific risk be diversified away by investing in both BeWhere Holdings and Wialan Technologies 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 Wialan Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BeWhere Holdings and Wialan Technologies, you can compare the effects of market volatilities on BeWhere Holdings and Wialan Technologies 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 Wialan Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of BeWhere Holdings and Wialan Technologies.
Diversification Opportunities for BeWhere Holdings and Wialan Technologies
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between BeWhere and Wialan is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding BeWhere Holdings and Wialan Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wialan Technologies 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 Wialan Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wialan Technologies has no effect on the direction of BeWhere Holdings i.e., BeWhere Holdings and Wialan Technologies go up and down completely randomly.
Pair Corralation between BeWhere Holdings and Wialan Technologies
Assuming the 90 days horizon BeWhere Holdings is expected to generate 0.39 times more return on investment than Wialan Technologies. However, BeWhere Holdings is 2.59 times less risky than Wialan Technologies. It trades about 0.08 of its potential returns per unit of risk. Wialan Technologies is currently generating about 0.01 per unit of risk. If you would invest 16.00 in BeWhere Holdings on August 29, 2024 and sell it today you would earn a total of 37.00 from holding BeWhere Holdings or generate 231.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BeWhere Holdings vs. Wialan Technologies
Performance |
| Timeline |
| BeWhere Holdings |
| Wialan Technologies |
BeWhere Holdings and Wialan Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BeWhere Holdings and Wialan Technologies
The main advantage of trading using opposite BeWhere Holdings and Wialan Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BeWhere Holdings position performs unexpectedly, Wialan Technologies 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 Wialan Technologies will offset losses from the drop in Wialan Technologies' long position.| BeWhere Holdings vs. Boxlight Corp Class | BeWhere Holdings vs. Siyata Mobile | BeWhere Holdings vs. ClearOne | BeWhere Holdings vs. Mobilicom Limited American |
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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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