Correlation Between Imageware Sys and BHPA
Can any of the company-specific risk be diversified away by investing in both Imageware Sys and BHPA 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 Imageware Sys and BHPA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Imageware Sys and BHPA Inc, you can compare the effects of market volatilities on Imageware Sys and BHPA 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 Imageware Sys with a short position of BHPA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Imageware Sys and BHPA.
Diversification Opportunities for Imageware Sys and BHPA
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Imageware and BHPA is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Imageware Sys and BHPA Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BHPA Inc and Imageware Sys 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 Imageware Sys are associated (or correlated) with BHPA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BHPA Inc has no effect on the direction of Imageware Sys i.e., Imageware Sys and BHPA go up and down completely randomly.
Pair Corralation between Imageware Sys and BHPA
If you would invest 0.30 in BHPA Inc on August 24, 2024 and sell it today you would earn a total of 0.20 from holding BHPA Inc or generate 66.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Imageware Sys vs. BHPA Inc
Performance |
| Timeline |
| Imageware Sys |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| BHPA Inc |
Imageware Sys and BHPA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Imageware Sys and BHPA
The main advantage of trading using opposite Imageware Sys and BHPA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Imageware Sys position performs unexpectedly, BHPA 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 BHPA will offset losses from the drop in BHPA's long position.| Imageware Sys vs. NetSol Technologies | Imageware Sys vs. MIND CTI | Imageware Sys vs. PDF Solutions | Imageware Sys vs. Ua Multimedia |
| BHPA vs. Transportadora de Gas | BHPA vs. PGE Corp | BHPA vs. WEC Energy Group | BHPA vs. Willscot Mobile Mini |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |