Correlation Between Beston Global and AiMedia Technologies
Can any of the company-specific risk be diversified away by investing in both Beston Global and AiMedia 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 Beston Global and AiMedia Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Beston Global Food and AiMedia Technologies, you can compare the effects of market volatilities on Beston Global and AiMedia 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 Beston Global with a short position of AiMedia Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beston Global and AiMedia Technologies.
Diversification Opportunities for Beston Global and AiMedia Technologies
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Beston and AiMedia is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Beston Global Food and AiMedia Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AiMedia Technologies and Beston Global 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 Beston Global Food are associated (or correlated) with AiMedia Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AiMedia Technologies has no effect on the direction of Beston Global i.e., Beston Global and AiMedia Technologies go up and down completely randomly.
Pair Corralation between Beston Global and AiMedia Technologies
Assuming the 90 days trading horizon Beston Global is expected to generate 1.85 times less return on investment than AiMedia Technologies. In addition to that, Beston Global is 3.01 times more volatile than AiMedia Technologies. It trades about 0.02 of its total potential returns per unit of risk. AiMedia Technologies is currently generating about 0.11 per unit of volatility. If you would invest 37.00 in AiMedia Technologies on August 27, 2024 and sell it today you would earn a total of 34.00 from holding AiMedia Technologies or generate 91.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beston Global Food vs. AiMedia Technologies
Performance |
| Timeline |
| Beston Global Food |
| AiMedia Technologies |
Beston Global and AiMedia Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beston Global and AiMedia Technologies
The main advantage of trading using opposite Beston Global and AiMedia Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beston Global position performs unexpectedly, AiMedia 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 AiMedia Technologies will offset losses from the drop in AiMedia Technologies' long position.| Beston Global vs. Ainsworth Game Technology | Beston Global vs. Bio Gene Technology | Beston Global vs. Ras Technology Holdings | Beston Global vs. Wt Financial Group |
| AiMedia Technologies vs. Carnegie Clean Energy | AiMedia Technologies vs. Alto Metals | AiMedia Technologies vs. Eagle Mountain Mining | AiMedia Technologies vs. Aurelia Metals |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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