Correlation Between BorgWarner and TenX Keane
Can any of the company-specific risk be diversified away by investing in both BorgWarner and TenX Keane 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 BorgWarner and TenX Keane into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BorgWarner and TenX Keane Acquisition, you can compare the effects of market volatilities on BorgWarner and TenX Keane 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 BorgWarner with a short position of TenX Keane. Check out your portfolio center. Please also check ongoing floating volatility patterns of BorgWarner and TenX Keane.
Diversification Opportunities for BorgWarner and TenX Keane
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between BorgWarner and TenX is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding BorgWarner and TenX Keane Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TenX Keane Acquisition and BorgWarner 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 BorgWarner are associated (or correlated) with TenX Keane. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TenX Keane Acquisition has no effect on the direction of BorgWarner i.e., BorgWarner and TenX Keane go up and down completely randomly.
Pair Corralation between BorgWarner and TenX Keane
If you would invest 3,345 in BorgWarner on September 4, 2024 and sell it today you would earn a total of 87.00 from holding BorgWarner or generate 2.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
BorgWarner vs. TenX Keane Acquisition
Performance |
| Timeline |
| BorgWarner |
| TenX Keane Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
BorgWarner and TenX Keane Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BorgWarner and TenX Keane
The main advantage of trading using opposite BorgWarner and TenX Keane positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BorgWarner position performs unexpectedly, TenX Keane 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 TenX Keane will offset losses from the drop in TenX Keane's long position.| BorgWarner vs. Lear Corporation | BorgWarner vs. Autoliv | BorgWarner vs. Fox Factory Holding | BorgWarner vs. LKQ Corporation |
| TenX Keane vs. Amkor Technology | TenX Keane vs. Paysafe | TenX Keane vs. American Eagle Outfitters | TenX Keane vs. Vera Bradley |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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