Correlation Between AMTD Digital and Beamr Imaging
Can any of the company-specific risk be diversified away by investing in both AMTD Digital and Beamr Imaging 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 AMTD Digital and Beamr Imaging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AMTD Digital and Beamr Imaging Ltd, you can compare the effects of market volatilities on AMTD Digital and Beamr Imaging 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 AMTD Digital with a short position of Beamr Imaging. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMTD Digital and Beamr Imaging.
Diversification Opportunities for AMTD Digital and Beamr Imaging
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between AMTD and Beamr is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding AMTD Digital and Beamr Imaging Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beamr Imaging and AMTD Digital 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 AMTD Digital are associated (or correlated) with Beamr Imaging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beamr Imaging has no effect on the direction of AMTD Digital i.e., AMTD Digital and Beamr Imaging go up and down completely randomly.
Pair Corralation between AMTD Digital and Beamr Imaging
Considering the 90-day investment horizon AMTD Digital is expected to under-perform the Beamr Imaging. But the stock apears to be less risky and, when comparing its historical volatility, AMTD Digital is 1.26 times less risky than Beamr Imaging. The stock trades about -0.18 of its potential returns per unit of risk. The Beamr Imaging Ltd is currently generating about -0.13 of returns per unit of risk over similar time horizon. If you would invest 340.00 in Beamr Imaging Ltd on August 28, 2024 and sell it today you would lose (51.00) from holding Beamr Imaging Ltd or give up 15.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AMTD Digital vs. Beamr Imaging Ltd
Performance |
| Timeline |
| AMTD Digital |
| Beamr Imaging |
AMTD Digital and Beamr Imaging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMTD Digital and Beamr Imaging
The main advantage of trading using opposite AMTD Digital and Beamr Imaging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMTD Digital position performs unexpectedly, Beamr Imaging 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 Beamr Imaging will offset losses from the drop in Beamr Imaging's long position.The idea behind AMTD Digital and Beamr Imaging Ltd pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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