Correlation Between Freight Technologies and BSQUARE
Can any of the company-specific risk be diversified away by investing in both Freight Technologies and BSQUARE 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 Freight Technologies and BSQUARE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Freight Technologies and BSQUARE, you can compare the effects of market volatilities on Freight Technologies and BSQUARE 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 Freight Technologies with a short position of BSQUARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Freight Technologies and BSQUARE.
Diversification Opportunities for Freight Technologies and BSQUARE
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Freight and BSQUARE is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Freight Technologies and BSQUARE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BSQUARE and Freight Technologies 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 Freight Technologies are associated (or correlated) with BSQUARE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BSQUARE has no effect on the direction of Freight Technologies i.e., Freight Technologies and BSQUARE go up and down completely randomly.
Pair Corralation between Freight Technologies and BSQUARE
If you would invest 181.00 in Freight Technologies on September 13, 2024 and sell it today you would lose (8.00) from holding Freight Technologies or give up 4.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 2.33% |
| Values | Daily Returns |
Freight Technologies vs. BSQUARE
Performance |
| Timeline |
| Freight Technologies |
| BSQUARE |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Freight Technologies and BSQUARE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Freight Technologies and BSQUARE
The main advantage of trading using opposite Freight Technologies and BSQUARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Freight Technologies position performs unexpectedly, BSQUARE 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 BSQUARE will offset losses from the drop in BSQUARE's long position.| Freight Technologies vs. Infobird Co | Freight Technologies vs. HeartCore Enterprises | Freight Technologies vs. CXApp Inc | Freight Technologies vs. Quhuo |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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