Correlation Between LiCycle Holdings and BQE Water
Can any of the company-specific risk be diversified away by investing in both LiCycle Holdings and BQE Water 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 LiCycle Holdings and BQE Water into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LiCycle Holdings Corp and BQE Water, you can compare the effects of market volatilities on LiCycle Holdings and BQE Water 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 LiCycle Holdings with a short position of BQE Water. Check out your portfolio center. Please also check ongoing floating volatility patterns of LiCycle Holdings and BQE Water.
Diversification Opportunities for LiCycle Holdings and BQE Water
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between LiCycle and BQE is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding LiCycle Holdings Corp and BQE Water in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BQE Water and LiCycle Holdings 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 LiCycle Holdings Corp are associated (or correlated) with BQE Water. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BQE Water has no effect on the direction of LiCycle Holdings i.e., LiCycle Holdings and BQE Water go up and down completely randomly.
Pair Corralation between LiCycle Holdings and BQE Water
Given the investment horizon of 90 days LiCycle Holdings Corp is expected to under-perform the BQE Water. In addition to that, LiCycle Holdings is 2.4 times more volatile than BQE Water. It trades about -0.03 of its total potential returns per unit of risk. BQE Water is currently generating about 0.05 per unit of volatility. If you would invest 2,235 in BQE Water on August 29, 2024 and sell it today you would earn a total of 1,565 from holding BQE Water or generate 70.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
LiCycle Holdings Corp vs. BQE Water
Performance |
| Timeline |
| LiCycle Holdings Corp |
| BQE Water |
LiCycle Holdings and BQE Water Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LiCycle Holdings and BQE Water
The main advantage of trading using opposite LiCycle Holdings and BQE Water positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LiCycle Holdings position performs unexpectedly, BQE Water 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 BQE Water will offset losses from the drop in BQE Water's long position.| LiCycle Holdings vs. Casella Waste Systems | LiCycle Holdings vs. Perma Fix Environmental Svcs | LiCycle Holdings vs. Montrose Environmental Grp | LiCycle Holdings vs. LanzaTech Global |
| BQE Water vs. Deere Company | BQE Water vs. Columbus McKinnon | BQE Water vs. Hyster Yale Materials Handling | BQE Water vs. Manitowoc |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |