Correlation Between Bm Technologies and Full Truck
Can any of the company-specific risk be diversified away by investing in both Bm Technologies and Full Truck 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 Full Truck into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bm Technologies and Full Truck Alliance, you can compare the effects of market volatilities on Bm Technologies and Full Truck 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 Full Truck. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bm Technologies and Full Truck.
Diversification Opportunities for Bm Technologies and Full Truck
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BMTX and Full is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Bm Technologies and Full Truck Alliance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Full Truck Alliance 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 Full Truck. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Full Truck Alliance has no effect on the direction of Bm Technologies i.e., Bm Technologies and Full Truck go up and down completely randomly.
Pair Corralation between Bm Technologies and Full Truck
Given the investment horizon of 90 days Bm Technologies is expected to generate 4.22 times less return on investment than Full Truck. But when comparing it to its historical volatility, Bm Technologies is 10.78 times less risky than Full Truck. It trades about 0.12 of its potential returns per unit of risk. Full Truck Alliance is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 916.00 in Full Truck Alliance on August 27, 2024 and sell it today you would earn a total of 21.00 from holding Full Truck Alliance or generate 2.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bm Technologies vs. Full Truck Alliance
Performance |
| Timeline |
| Bm Technologies |
| Full Truck Alliance |
Bm Technologies and Full Truck Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bm Technologies and Full Truck
The main advantage of trading using opposite Bm Technologies and Full Truck positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bm Technologies position performs unexpectedly, Full Truck 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 Full Truck will offset losses from the drop in Full Truck's long position.| Bm Technologies vs. Where Food Comes | Bm Technologies vs. eGain | Bm Technologies vs. Research Solutions | Bm Technologies vs. Infobird Co |
| Full Truck vs. Domo Inc | Full Truck vs. Oblong Inc | Full Truck vs. Kingsoft Cloud Holdings | Full Truck vs. Bm 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |