Correlation Between Beamr Imaging and Aspen Technology
Can any of the company-specific risk be diversified away by investing in both Beamr Imaging and Aspen Technology 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 Beamr Imaging and Aspen Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Beamr Imaging Ltd and Aspen Technology, you can compare the effects of market volatilities on Beamr Imaging and Aspen Technology 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 Beamr Imaging with a short position of Aspen Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beamr Imaging and Aspen Technology.
Diversification Opportunities for Beamr Imaging and Aspen Technology
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Beamr and Aspen is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Beamr Imaging Ltd and Aspen Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aspen Technology and Beamr Imaging 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 Beamr Imaging Ltd are associated (or correlated) with Aspen Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aspen Technology has no effect on the direction of Beamr Imaging i.e., Beamr Imaging and Aspen Technology go up and down completely randomly.
Pair Corralation between Beamr Imaging and Aspen Technology
Considering the 90-day investment horizon Beamr Imaging Ltd is expected to generate 8.75 times more return on investment than Aspen Technology. However, Beamr Imaging is 8.75 times more volatile than Aspen Technology. It trades about 0.04 of its potential returns per unit of risk. Aspen Technology is currently generating about 0.02 per unit of risk. If you would invest 365.00 in Beamr Imaging Ltd on August 24, 2024 and sell it today you would lose (63.00) from holding Beamr Imaging Ltd or give up 17.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 88.51% |
| Values | Daily Returns |
Beamr Imaging Ltd vs. Aspen Technology
Performance |
| Timeline |
| Beamr Imaging |
| Aspen Technology |
Beamr Imaging and Aspen Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beamr Imaging and Aspen Technology
The main advantage of trading using opposite Beamr Imaging and Aspen Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beamr Imaging position performs unexpectedly, Aspen Technology 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 Aspen Technology will offset losses from the drop in Aspen Technology's long position.The idea behind Beamr Imaging Ltd and Aspen Technology 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.| Aspen Technology vs. Bentley Systems | Aspen Technology vs. Tyler Technologies | Aspen Technology vs. Blackbaud | Aspen Technology vs. SSC Technologies Holdings |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |