Correlation Between Beeks Trading and St Galler
Can any of the company-specific risk be diversified away by investing in both Beeks Trading and St Galler 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 Beeks Trading and St Galler into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Beeks Trading and St Galler Kantonalbank, you can compare the effects of market volatilities on Beeks Trading and St Galler 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 Beeks Trading with a short position of St Galler. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beeks Trading and St Galler.
Diversification Opportunities for Beeks Trading and St Galler
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Beeks and 0QQZ is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Beeks Trading and St Galler Kantonalbank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on St Galler Kantonalbank and Beeks Trading 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 Beeks Trading are associated (or correlated) with St Galler. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of St Galler Kantonalbank has no effect on the direction of Beeks Trading i.e., Beeks Trading and St Galler go up and down completely randomly.
Pair Corralation between Beeks Trading and St Galler
Assuming the 90 days trading horizon Beeks Trading is expected to generate 3.78 times more return on investment than St Galler. However, Beeks Trading is 3.78 times more volatile than St Galler Kantonalbank. It trades about 0.06 of its potential returns per unit of risk. St Galler Kantonalbank is currently generating about -0.02 per unit of risk. If you would invest 13,200 in Beeks Trading on October 11, 2024 and sell it today you would earn a total of 14,200 from holding Beeks Trading or generate 107.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beeks Trading vs. St Galler Kantonalbank
Performance |
| Timeline |
| Beeks Trading |
| St Galler Kantonalbank |
Beeks Trading and St Galler Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beeks Trading and St Galler
The main advantage of trading using opposite Beeks Trading and St Galler positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beeks Trading position performs unexpectedly, St Galler 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 St Galler will offset losses from the drop in St Galler's long position.| Beeks Trading vs. Charter Communications Cl | Beeks Trading vs. Zoom Video Communications | Beeks Trading vs. Creo Medical Group | Beeks Trading vs. Tata Steel Limited |
| St Galler vs. EVS Broadcast Equipment | St Galler vs. Bankers Investment Trust | St Galler vs. Amedeo Air Four | St Galler vs. Beeks Trading |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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