Correlation Between Trust Stamp and Bm Technologies
Can any of the company-specific risk be diversified away by investing in both Trust Stamp and Bm Technologies 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 Trust Stamp and Bm Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Trust Stamp and Bm Technologies, you can compare the effects of market volatilities on Trust Stamp and Bm Technologies 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 Trust Stamp with a short position of Bm Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trust Stamp and Bm Technologies.
Diversification Opportunities for Trust Stamp and Bm Technologies
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Trust and BMTX is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Trust Stamp and Bm Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bm Technologies and Trust Stamp 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 Trust Stamp are associated (or correlated) with Bm Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bm Technologies has no effect on the direction of Trust Stamp i.e., Trust Stamp and Bm Technologies go up and down completely randomly.
Pair Corralation between Trust Stamp and Bm Technologies
Given the investment horizon of 90 days Trust Stamp is expected to under-perform the Bm Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Trust Stamp is 1.17 times less risky than Bm Technologies. The stock trades about -0.08 of its potential returns per unit of risk. The Bm Technologies is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 322.00 in Bm Technologies on August 25, 2024 and sell it today you would earn a total of 155.00 from holding Bm Technologies or generate 48.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Trust Stamp vs. Bm Technologies
Performance |
| Timeline |
| Trust Stamp |
| Bm Technologies |
Trust Stamp and Bm Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trust Stamp and Bm Technologies
The main advantage of trading using opposite Trust Stamp and Bm Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trust Stamp position performs unexpectedly, Bm Technologies 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 Bm Technologies will offset losses from the drop in Bm Technologies' long position.| Trust Stamp vs. HeartCore Enterprises | Trust Stamp vs. Quhuo | Trust Stamp vs. Infobird Co | Trust Stamp vs. Beamr Imaging Ltd |
| Bm Technologies vs. OLB Group | Bm Technologies vs. Friendable | Bm Technologies vs. Trust Stamp | Bm Technologies vs. Infobird Co |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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