Correlation Between Fintech Select and Bewhere Holdings
Can any of the company-specific risk be diversified away by investing in both Fintech Select 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 Fintech Select and Bewhere Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fintech Select and Bewhere Holdings, you can compare the effects of market volatilities on Fintech Select 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 Fintech Select with a short position of Bewhere Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fintech Select and Bewhere Holdings.
Diversification Opportunities for Fintech Select and Bewhere Holdings
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Fintech and Bewhere is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Fintech Select and Bewhere Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bewhere Holdings and Fintech Select 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 Fintech Select 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 Fintech Select i.e., Fintech Select and Bewhere Holdings go up and down completely randomly.
Pair Corralation between Fintech Select and Bewhere Holdings
Assuming the 90 days trading horizon Fintech Select is expected to generate 4.04 times more return on investment than Bewhere Holdings. However, Fintech Select is 4.04 times more volatile than Bewhere Holdings. It trades about 0.08 of its potential returns per unit of risk. Bewhere Holdings is currently generating about 0.11 per unit of risk. If you would invest 3.00 in Fintech Select on August 26, 2024 and sell it today you would earn a total of 1.00 from holding Fintech Select or generate 33.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fintech Select vs. Bewhere Holdings
Performance |
| Timeline |
| Fintech Select |
| Bewhere Holdings |
Fintech Select and Bewhere Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fintech Select and Bewhere Holdings
The main advantage of trading using opposite Fintech Select and Bewhere Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fintech Select 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.| Fintech Select vs. LeoNovus | Fintech Select vs. Identillect Technologies Corp | Fintech Select vs. Datametrex AI |
| Bewhere Holdings vs. Current Water Technologies | Bewhere Holdings vs. Sparta Capital | Bewhere Holdings vs. Fintech Select | Bewhere Holdings vs. iShares Canadian HYBrid |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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