Correlation Between Electronic Systems and BeWhere Holdings
Can any of the company-specific risk be diversified away by investing in both Electronic Systems and BeWhere Holdings 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 Electronic Systems and BeWhere Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Electronic Systems Technology and BeWhere Holdings, you can compare the effects of market volatilities on Electronic Systems and BeWhere Holdings 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 Electronic Systems with a short position of BeWhere Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Electronic Systems and BeWhere Holdings.
Diversification Opportunities for Electronic Systems and BeWhere Holdings
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Electronic and BeWhere is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Electronic Systems Technology and BeWhere Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BeWhere Holdings and Electronic Systems 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 Electronic Systems Technology are associated (or correlated) with BeWhere Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BeWhere Holdings has no effect on the direction of Electronic Systems i.e., Electronic Systems and BeWhere Holdings go up and down completely randomly.
Pair Corralation between Electronic Systems and BeWhere Holdings
Given the investment horizon of 90 days Electronic Systems is expected to generate 1.61 times less return on investment than BeWhere Holdings. In addition to that, Electronic Systems is 1.66 times more volatile than BeWhere Holdings. It trades about 0.03 of its total potential returns per unit of risk. BeWhere Holdings is currently generating about 0.08 per unit of volatility. If you would invest 16.00 in BeWhere Holdings on August 25, 2024 and sell it today you would earn a total of 39.00 from holding BeWhere Holdings or generate 243.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Electronic Systems Technology vs. BeWhere Holdings
Performance |
| Timeline |
| Electronic Systems |
| BeWhere Holdings |
Electronic Systems and BeWhere Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Electronic Systems and BeWhere Holdings
The main advantage of trading using opposite Electronic Systems and BeWhere Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Electronic Systems position performs unexpectedly, BeWhere Holdings 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 BeWhere Holdings will offset losses from the drop in BeWhere Holdings' long position.| Electronic Systems vs. BeWhere Holdings | Electronic Systems vs. Frequency Electronics | Electronic Systems vs. Wialan Technologies | Electronic Systems vs. TPT Global Tech |
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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