Correlation Between Embrace Change and Binah Capital
Can any of the company-specific risk be diversified away by investing in both Embrace Change and Binah Capital 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 Embrace Change and Binah Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Embrace Change Acquisition and Binah Capital Group,, you can compare the effects of market volatilities on Embrace Change and Binah Capital 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 Embrace Change with a short position of Binah Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Embrace Change and Binah Capital.
Diversification Opportunities for Embrace Change and Binah Capital
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Embrace and Binah is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Embrace Change Acquisition and Binah Capital Group, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Binah Capital Group, and Embrace Change 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 Embrace Change Acquisition are associated (or correlated) with Binah Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Binah Capital Group, has no effect on the direction of Embrace Change i.e., Embrace Change and Binah Capital go up and down completely randomly.
Pair Corralation between Embrace Change and Binah Capital
Given the investment horizon of 90 days Embrace Change is expected to generate 90.45 times less return on investment than Binah Capital. But when comparing it to its historical volatility, Embrace Change Acquisition is 68.9 times less risky than Binah Capital. It trades about 0.09 of its potential returns per unit of risk. Binah Capital Group, is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 212.00 in Binah Capital Group, on September 2, 2024 and sell it today you would earn a total of 46.00 from holding Binah Capital Group, or generate 21.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Embrace Change Acquisition vs. Binah Capital Group,
Performance |
| Timeline |
| Embrace Change Acqui |
| Binah Capital Group, |
Embrace Change and Binah Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Embrace Change and Binah Capital
The main advantage of trading using opposite Embrace Change and Binah Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Embrace Change position performs unexpectedly, Binah Capital 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 Binah Capital will offset losses from the drop in Binah Capital's long position.| Embrace Change vs. China Health Management | Embrace Change vs. Absolute Health and | Embrace Change vs. Supurva Healthcare Group | Embrace Change vs. TransAKT |
| Binah Capital vs. NETGEAR | Binah Capital vs. Pinterest | Binah Capital vs. Allegiant Travel | Binah Capital vs. Delta Air Lines |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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