Correlation Between Borqs Technologies and AMTD Digital
Can any of the company-specific risk be diversified away by investing in both Borqs Technologies 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 Borqs Technologies and AMTD Digital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Borqs Technologies and AMTD Digital, you can compare the effects of market volatilities on Borqs Technologies 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 Borqs Technologies with a short position of AMTD Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Borqs Technologies and AMTD Digital.
Diversification Opportunities for Borqs Technologies and AMTD Digital
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Borqs and AMTD is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Borqs Technologies and AMTD Digital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMTD Digital 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 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 Borqs Technologies i.e., Borqs Technologies and AMTD Digital go up and down completely randomly.
Pair Corralation between Borqs Technologies and AMTD Digital
If you would invest 20.00 in Borqs Technologies on August 28, 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 | Insignificant |
| Accuracy | 2.33% |
| Values | Daily Returns |
Borqs Technologies vs. AMTD Digital
Performance |
| Timeline |
| Borqs Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| AMTD Digital |
Borqs Technologies and AMTD Digital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Borqs Technologies and AMTD Digital
The main advantage of trading using opposite Borqs Technologies and AMTD Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Borqs Technologies 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.| 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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