Correlation Between Bm Technologies and EPlus
Can any of the company-specific risk be diversified away by investing in both Bm Technologies and EPlus 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 Bm Technologies and EPlus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bm Technologies and ePlus inc, you can compare the effects of market volatilities on Bm Technologies and EPlus 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 Bm Technologies with a short position of EPlus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bm Technologies and EPlus.
Diversification Opportunities for Bm Technologies and EPlus
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BMTX and EPlus is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Bm Technologies and ePlus inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ePlus inc and Bm 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 Bm Technologies are associated (or correlated) with EPlus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ePlus inc has no effect on the direction of Bm Technologies i.e., Bm Technologies and EPlus go up and down completely randomly.
Pair Corralation between Bm Technologies and EPlus
Given the investment horizon of 90 days Bm Technologies is expected to generate 3.03 times more return on investment than EPlus. However, Bm Technologies is 3.03 times more volatile than ePlus inc. It trades about 0.08 of its potential returns per unit of risk. ePlus inc is currently generating about 0.04 per unit of risk. If you would invest 206.00 in Bm Technologies on November 3, 2024 and sell it today you would earn a total of 294.00 from holding Bm Technologies or generate 142.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bm Technologies vs. ePlus inc
Performance |
| Timeline |
| Bm Technologies |
| ePlus inc |
Bm Technologies and EPlus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bm Technologies and EPlus
The main advantage of trading using opposite Bm Technologies and EPlus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bm Technologies position performs unexpectedly, EPlus 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 EPlus will offset losses from the drop in EPlus' long position.| Bm Technologies vs. Where Food Comes | Bm Technologies vs. eGain | Bm Technologies vs. Research Solutions | Bm Technologies vs. Infobird Co |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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