Correlation Between Beston Global and Hammer Metals
Can any of the company-specific risk be diversified away by investing in both Beston Global and Hammer Metals 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 Hammer Metals 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 Hammer Metals, you can compare the effects of market volatilities on Beston Global and Hammer Metals 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 Hammer Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beston Global and Hammer Metals.
Diversification Opportunities for Beston Global and Hammer Metals
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Beston and Hammer is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Beston Global Food and Hammer Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hammer Metals 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 Hammer Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hammer Metals has no effect on the direction of Beston Global i.e., Beston Global and Hammer Metals go up and down completely randomly.
Pair Corralation between Beston Global and Hammer Metals
If you would invest 0.30 in Beston Global Food on October 12, 2024 and sell it today you would earn a total of 0.00 from holding Beston Global Food or generate 0.0% 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. Hammer Metals
Performance |
| Timeline |
| Beston Global Food |
| Hammer Metals |
Beston Global and Hammer Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beston Global and Hammer Metals
The main advantage of trading using opposite Beston Global and Hammer Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beston Global position performs unexpectedly, Hammer Metals 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 Hammer Metals will offset losses from the drop in Hammer Metals' long position.| Beston Global vs. WiseTech Global Limited | Beston Global vs. Aeris Environmental | Beston Global vs. Vulcan Steel | Beston Global vs. Phoslock Environmental Technologies |
| Hammer Metals vs. Sandon Capital Investments | Hammer Metals vs. Diversified United Investment | Hammer Metals vs. Carnegie Clean Energy | Hammer Metals vs. Technology One |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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