Correlation Between BingEx and Globavend Holdings
Can any of the company-specific risk be diversified away by investing in both BingEx and Globavend 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 BingEx and Globavend Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BingEx and Globavend Holdings Limited, you can compare the effects of market volatilities on BingEx and Globavend 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 BingEx with a short position of Globavend Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of BingEx and Globavend Holdings.
Diversification Opportunities for BingEx and Globavend Holdings
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BingEx and Globavend is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding BingEx and Globavend Holdings Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Globavend Holdings and BingEx 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 BingEx are associated (or correlated) with Globavend Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Globavend Holdings has no effect on the direction of BingEx i.e., BingEx and Globavend Holdings go up and down completely randomly.
Pair Corralation between BingEx and Globavend Holdings
Considering the 90-day investment horizon BingEx is expected to under-perform the Globavend Holdings. But the stock apears to be less risky and, when comparing its historical volatility, BingEx is 1.33 times less risky than Globavend Holdings. The stock trades about -0.13 of its potential returns per unit of risk. The Globavend Holdings Limited is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 258.00 in Globavend Holdings Limited on November 5, 2024 and sell it today you would lose (197.00) from holding Globavend Holdings Limited or give up 76.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 26.86% |
| Values | Daily Returns |
BingEx vs. Globavend Holdings Limited
Performance |
| Timeline |
| BingEx |
| Globavend Holdings |
BingEx and Globavend Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BingEx and Globavend Holdings
The main advantage of trading using opposite BingEx and Globavend Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BingEx position performs unexpectedly, Globavend 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 Globavend Holdings will offset losses from the drop in Globavend Holdings' long position.| BingEx vs. Flutter Entertainment plc | BingEx vs. NorthWestern | BingEx vs. Gladstone Investment | BingEx vs. American Clean Resources |
| Globavend Holdings vs. Aptiv PLC | Globavend Holdings vs. Amkor Technology | Globavend Holdings vs. Highway Holdings Limited | Globavend Holdings vs. BRP Inc |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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