Correlation Between Frequency Electronics and BeWhere Holdings
Can any of the company-specific risk be diversified away by investing in both Frequency Electronics 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 Frequency Electronics and BeWhere Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Frequency Electronics and BeWhere Holdings, you can compare the effects of market volatilities on Frequency Electronics 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 Frequency Electronics with a short position of BeWhere Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Frequency Electronics and BeWhere Holdings.
Diversification Opportunities for Frequency Electronics and BeWhere Holdings
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Frequency and BeWhere is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Frequency Electronics and BeWhere Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BeWhere Holdings and Frequency Electronics 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 Frequency Electronics 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 Frequency Electronics i.e., Frequency Electronics and BeWhere Holdings go up and down completely randomly.
Pair Corralation between Frequency Electronics and BeWhere Holdings
Given the investment horizon of 90 days Frequency Electronics is expected to under-perform the BeWhere Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Frequency Electronics is 1.5 times less risky than BeWhere Holdings. The stock trades about -0.32 of its potential returns per unit of risk. The BeWhere Holdings is currently generating about -0.16 of returns per unit of risk over similar time horizon. If you would invest 48.00 in BeWhere Holdings on December 9, 2024 and sell it today you would lose (5.00) from holding BeWhere Holdings or give up 10.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Frequency Electronics vs. BeWhere Holdings
Performance |
| Timeline |
| Frequency Electronics |
| BeWhere Holdings |
Frequency Electronics and BeWhere Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Frequency Electronics and BeWhere Holdings
The main advantage of trading using opposite Frequency Electronics and BeWhere Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Frequency Electronics 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.| Frequency Electronics vs. BK Technologies | ||
| Frequency Electronics vs. Actelis Networks | ||
| Frequency Electronics vs. Lantronix | ||
| Frequency Electronics vs. KVH Industries |
| BeWhere Holdings vs. Electronic Systems Technology | ||
| BeWhere Holdings vs. Frequency Electronics | ||
| BeWhere Holdings vs. Wialan Technologies | ||
| BeWhere Holdings vs. TPT Global Tech |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |