Correlation Between BK Technologies and DZS
Can any of the company-specific risk be diversified away by investing in both BK Technologies and DZS 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 BK Technologies and DZS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BK Technologies and DZS Inc, you can compare the effects of market volatilities on BK Technologies and DZS 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 BK Technologies with a short position of DZS. Check out your portfolio center. Please also check ongoing floating volatility patterns of BK Technologies and DZS.
Diversification Opportunities for BK Technologies and DZS
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BKTI and DZS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BK Technologies and DZS Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DZS Inc and BK Technologies 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 BK Technologies are associated (or correlated) with DZS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DZS Inc has no effect on the direction of BK Technologies i.e., BK Technologies and DZS go up and down completely randomly.
Pair Corralation between BK Technologies and DZS
If you would invest 1,325 in BK Technologies on November 28, 2024 and sell it today you would earn a total of 1,911 from holding BK Technologies or generate 144.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
BK Technologies vs. DZS Inc
Performance |
| Timeline |
| BK Technologies |
| DZS Inc |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
BK Technologies and DZS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BK Technologies and DZS
The main advantage of trading using opposite BK Technologies and DZS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BK Technologies position performs unexpectedly, DZS 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 DZS will offset losses from the drop in DZS's long position.| BK Technologies vs. Frequency Electronics | BK Technologies vs. Actelis Networks | BK Technologies vs. Optical Cable | BK Technologies vs. Baylin Technologies |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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