Correlation Between Borqs Technologies and Farmmi
Can any of the company-specific risk be diversified away by investing in both Borqs Technologies and Farmmi 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 Borqs Technologies and Farmmi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Borqs Technologies and Farmmi Inc, you can compare the effects of market volatilities on Borqs Technologies and Farmmi 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 Borqs Technologies with a short position of Farmmi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Borqs Technologies and Farmmi.
Diversification Opportunities for Borqs Technologies and Farmmi
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Borqs and Farmmi is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Borqs Technologies and Farmmi Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Farmmi Inc and Borqs 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 Borqs Technologies are associated (or correlated) with Farmmi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Farmmi Inc has no effect on the direction of Borqs Technologies i.e., Borqs Technologies and Farmmi go up and down completely randomly.
Pair Corralation between Borqs Technologies and Farmmi
If you would invest 20.00 in Borqs Technologies on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Borqs Technologies or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Borqs Technologies vs. Farmmi Inc
Performance |
| Timeline |
| Borqs Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Farmmi Inc |
Borqs Technologies and Farmmi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Borqs Technologies and Farmmi
The main advantage of trading using opposite Borqs Technologies and Farmmi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Borqs Technologies position performs unexpectedly, Farmmi 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 Farmmi will offset losses from the drop in Farmmi's long position.| Borqs Technologies vs. CXApp Inc | Borqs Technologies vs. Trust Stamp | Borqs Technologies vs. Freight Technologies | Borqs 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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