Correlation Between Beeks Trading and Ceres Power
Can any of the company-specific risk be diversified away by investing in both Beeks Trading and Ceres Power 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 Ceres Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Beeks Trading and Ceres Power Holdings, you can compare the effects of market volatilities on Beeks Trading and Ceres Power 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 Ceres Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beeks Trading and Ceres Power.
Diversification Opportunities for Beeks Trading and Ceres Power
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Beeks and Ceres is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Beeks Trading and Ceres Power Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ceres Power Holdings 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 Ceres Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ceres Power Holdings has no effect on the direction of Beeks Trading i.e., Beeks Trading and Ceres Power go up and down completely randomly.
Pair Corralation between Beeks Trading and Ceres Power
Assuming the 90 days trading horizon Beeks Trading is expected to generate 0.63 times more return on investment than Ceres Power. However, Beeks Trading is 1.59 times less risky than Ceres Power. It trades about 0.1 of its potential returns per unit of risk. Ceres Power Holdings is currently generating about -0.01 per unit of risk. If you would invest 25,400 in Beeks Trading on September 12, 2024 and sell it today you would earn a total of 4,600 from holding Beeks Trading or generate 18.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.46% |
| Values | Daily Returns |
Beeks Trading vs. Ceres Power Holdings
Performance |
| Timeline |
| Beeks Trading |
| Ceres Power Holdings |
Beeks Trading and Ceres Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beeks Trading and Ceres Power
The main advantage of trading using opposite Beeks Trading and Ceres Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beeks Trading position performs unexpectedly, Ceres Power 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 Ceres Power will offset losses from the drop in Ceres Power's long position.| Beeks Trading vs. Home Depot | Beeks Trading vs. Chrysalis Investments | Beeks Trading vs. Neometals | Beeks Trading vs. Coor Service Management |
| Ceres Power vs. Anglesey Mining | Ceres Power vs. Sabre Insurance Group | Ceres Power vs. Endeavour Mining Corp | Ceres Power vs. United Utilities Group |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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