Correlation Between BK Technologies and Hewlett Packard
Can any of the company-specific risk be diversified away by investing in both BK Technologies and Hewlett Packard 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 Hewlett Packard into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BK Technologies and Hewlett Packard Enterprise, you can compare the effects of market volatilities on BK Technologies and Hewlett Packard 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 Hewlett Packard. Check out your portfolio center. Please also check ongoing floating volatility patterns of BK Technologies and Hewlett Packard.
Diversification Opportunities for BK Technologies and Hewlett Packard
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BKTI and Hewlett is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding BK Technologies and Hewlett Packard Enterprise in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hewlett Packard Ente 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 Hewlett Packard. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hewlett Packard Ente has no effect on the direction of BK Technologies i.e., BK Technologies and Hewlett Packard go up and down completely randomly.
Pair Corralation between BK Technologies and Hewlett Packard
Given the investment horizon of 90 days BK Technologies is expected to generate 1.79 times more return on investment than Hewlett Packard. However, BK Technologies is 1.79 times more volatile than Hewlett Packard Enterprise. It trades about 0.08 of its potential returns per unit of risk. Hewlett Packard Enterprise is currently generating about 0.05 per unit of risk. If you would invest 1,449 in BK Technologies on September 12, 2024 and sell it today you would earn a total of 1,898 from holding BK Technologies or generate 130.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BK Technologies vs. Hewlett Packard Enterprise
Performance |
| Timeline |
| BK Technologies |
| Hewlett Packard Ente |
BK Technologies and Hewlett Packard Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BK Technologies and Hewlett Packard
The main advantage of trading using opposite BK Technologies and Hewlett Packard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BK Technologies position performs unexpectedly, Hewlett Packard 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 Hewlett Packard will offset losses from the drop in Hewlett Packard's long position.| BK Technologies vs. Frequency Electronics | BK Technologies vs. Actelis Networks | BK Technologies vs. Optical Cable | BK Technologies vs. Baylin Technologies |
| Hewlett Packard vs. Nokia Corp ADR | Hewlett Packard vs. Juniper Networks | Hewlett Packard vs. Ciena Corp | Hewlett Packard vs. Motorola Solutions |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |