Correlation Between Bolt Projects and Acm Research
Can any of the company-specific risk be diversified away by investing in both Bolt Projects and Acm Research 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 Bolt Projects and Acm Research into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bolt Projects Holdings, and Acm Research, you can compare the effects of market volatilities on Bolt Projects and Acm Research 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 Bolt Projects with a short position of Acm Research. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bolt Projects and Acm Research.
Diversification Opportunities for Bolt Projects and Acm Research
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bolt and Acm is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Bolt Projects Holdings, and Acm Research in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acm Research and Bolt Projects 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 Bolt Projects Holdings, are associated (or correlated) with Acm Research. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acm Research has no effect on the direction of Bolt Projects i.e., Bolt Projects and Acm Research go up and down completely randomly.
Pair Corralation between Bolt Projects and Acm Research
Assuming the 90 days horizon Bolt Projects Holdings, is expected to under-perform the Acm Research. In addition to that, Bolt Projects is 8.4 times more volatile than Acm Research. It trades about -0.11 of its total potential returns per unit of risk. Acm Research is currently generating about -0.18 per unit of volatility. If you would invest 1,997 in Acm Research on August 30, 2024 and sell it today you would lose (270.00) from holding Acm Research or give up 13.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 73.91% |
| Values | Daily Returns |
Bolt Projects Holdings, vs. Acm Research
Performance |
| Timeline |
| Bolt Projects Holdings, |
| Acm Research |
Bolt Projects and Acm Research Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bolt Projects and Acm Research
The main advantage of trading using opposite Bolt Projects and Acm Research positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bolt Projects position performs unexpectedly, Acm Research 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 Acm Research will offset losses from the drop in Acm Research's long position.| Bolt Projects vs. Acm Research | Bolt Projects vs. Flexible Solutions International | Bolt Projects vs. Uber Technologies | Bolt Projects vs. Evertz Technologies Limited |
| Acm Research vs. First Solar | Acm Research vs. Sunrun Inc | Acm Research vs. Canadian Solar | Acm Research vs. SolarEdge 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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