Correlation Between Bill and Walkme
Can any of the company-specific risk be diversified away by investing in both Bill and Walkme 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 Bill and Walkme into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bill Com Holdings and Walkme, you can compare the effects of market volatilities on Bill and Walkme 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 Bill with a short position of Walkme. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bill and Walkme.
Diversification Opportunities for Bill and Walkme
Very weak diversification
The 3 months correlation between Bill and Walkme is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Bill Com Holdings and Walkme in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Walkme and Bill 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 Bill Com Holdings are associated (or correlated) with Walkme. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Walkme has no effect on the direction of Bill i.e., Bill and Walkme go up and down completely randomly.
Pair Corralation between Bill and Walkme
Given the investment horizon of 90 days Bill is expected to generate 1.59 times less return on investment than Walkme. In addition to that, Bill is 1.04 times more volatile than Walkme. It trades about 0.02 of its total potential returns per unit of risk. Walkme is currently generating about 0.03 per unit of volatility. If you would invest 1,111 in Walkme on November 2, 2024 and sell it today you would earn a total of 284.00 from holding Walkme or generate 25.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 80.77% |
| Values | Daily Returns |
Bill Com Holdings vs. Walkme
Performance |
| Timeline |
| Bill Com Holdings |
| Walkme |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bill and Walkme Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bill and Walkme
The main advantage of trading using opposite Bill and Walkme positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bill position performs unexpectedly, Walkme 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 Walkme will offset losses from the drop in Walkme's long position.The idea behind Bill Com Holdings and Walkme pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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