Correlation Between Friendable and Bowmo
Can any of the company-specific risk be diversified away by investing in both Friendable and Bowmo 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 Friendable and Bowmo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Friendable and Bowmo Inc, you can compare the effects of market volatilities on Friendable and Bowmo 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 Friendable with a short position of Bowmo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Friendable and Bowmo.
Diversification Opportunities for Friendable and Bowmo
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Friendable and Bowmo is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Friendable and Bowmo Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bowmo Inc and Friendable 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 Friendable are associated (or correlated) with Bowmo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bowmo Inc has no effect on the direction of Friendable i.e., Friendable and Bowmo go up and down completely randomly.
Pair Corralation between Friendable and Bowmo
Given the investment horizon of 90 days Friendable is expected to generate 9.57 times less return on investment than Bowmo. But when comparing it to its historical volatility, Friendable is 3.56 times less risky than Bowmo. It trades about 0.04 of its potential returns per unit of risk. Bowmo Inc is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 0.55 in Bowmo Inc on August 31, 2024 and sell it today you would lose (0.49) from holding Bowmo Inc or give up 89.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Friendable vs. Bowmo Inc
Performance |
| Timeline |
| Friendable |
| Bowmo Inc |
Friendable and Bowmo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Friendable and Bowmo
The main advantage of trading using opposite Friendable and Bowmo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Friendable position performs unexpectedly, Bowmo 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 Bowmo will offset losses from the drop in Bowmo's long position.| Friendable vs. RenoWorks Software | Friendable vs. LifeSpeak | Friendable vs. 01 Communique Laboratory | Friendable vs. On4 Communications |
| Bowmo vs. Harrison Vickers and | Bowmo vs. Protext Mobility | Bowmo vs. TonnerOne World Holdings | Bowmo vs. Trans Global Grp |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |