Correlation Between Farmmi and Borqs Technologies
Can any of the company-specific risk be diversified away by investing in both Farmmi and Borqs Technologies 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 Farmmi and Borqs Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Farmmi Inc and Borqs Technologies, you can compare the effects of market volatilities on Farmmi and Borqs Technologies 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 Farmmi with a short position of Borqs Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Farmmi and Borqs Technologies.
Diversification Opportunities for Farmmi and Borqs Technologies
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Farmmi and Borqs is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Farmmi Inc and Borqs Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Borqs Technologies and Farmmi 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 Farmmi Inc are associated (or correlated) with Borqs Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Borqs Technologies has no effect on the direction of Farmmi i.e., Farmmi and Borqs Technologies go up and down completely randomly.
Pair Corralation between Farmmi and Borqs Technologies
If you would invest 20.00 in Borqs Technologies on August 29, 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 | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Farmmi Inc vs. Borqs Technologies
Performance |
| Timeline |
| Farmmi Inc |
| Borqs Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Farmmi and Borqs Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Farmmi and Borqs Technologies
The main advantage of trading using opposite Farmmi and Borqs Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Farmmi position performs unexpectedly, Borqs Technologies 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 Borqs Technologies will offset losses from the drop in Borqs Technologies' long position.The idea behind Farmmi Inc and Borqs Technologies pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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