Correlation Between Beamr Imaging and AMTD Digital
Can any of the company-specific risk be diversified away by investing in both Beamr Imaging and AMTD Digital 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 AMTD Digital 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 AMTD Digital, you can compare the effects of market volatilities on Beamr Imaging and AMTD Digital 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 AMTD Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beamr Imaging and AMTD Digital.
Diversification Opportunities for Beamr Imaging and AMTD Digital
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Beamr and AMTD is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Beamr Imaging Ltd and AMTD Digital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMTD Digital 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 AMTD Digital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMTD Digital has no effect on the direction of Beamr Imaging i.e., Beamr Imaging and AMTD Digital go up and down completely randomly.
Pair Corralation between Beamr Imaging and AMTD Digital
Considering the 90-day investment horizon Beamr Imaging Ltd is expected to generate 1.26 times more return on investment than AMTD Digital. However, Beamr Imaging is 1.26 times more volatile than AMTD Digital. It trades about -0.13 of its potential returns per unit of risk. AMTD Digital is currently generating about -0.18 per unit of risk. If you would invest 340.00 in Beamr Imaging Ltd on August 28, 2024 and sell it today you would lose (51.00) from holding Beamr Imaging Ltd or give up 15.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beamr Imaging Ltd vs. AMTD Digital
Performance |
| Timeline |
| Beamr Imaging |
| AMTD Digital |
Beamr Imaging and AMTD Digital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beamr Imaging and AMTD Digital
The main advantage of trading using opposite Beamr Imaging and AMTD Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beamr Imaging position performs unexpectedly, AMTD Digital 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 AMTD Digital will offset losses from the drop in AMTD Digital's long position.The idea behind Beamr Imaging Ltd and AMTD Digital 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.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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| 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 | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |