Correlation Between Sabien Technology and Beeks TradingLtd
Can any of the company-specific risk be diversified away by investing in both Sabien Technology and Beeks TradingLtd 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 Sabien Technology and Beeks TradingLtd into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sabien Technology Group and Beeks Trading, you can compare the effects of market volatilities on Sabien Technology and Beeks TradingLtd 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 Sabien Technology with a short position of Beeks TradingLtd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sabien Technology and Beeks TradingLtd.
Diversification Opportunities for Sabien Technology and Beeks TradingLtd
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Sabien and Beeks is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Sabien Technology Group and Beeks Trading in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beeks TradingLtd and Sabien Technology 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 Sabien Technology Group are associated (or correlated) with Beeks TradingLtd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beeks TradingLtd has no effect on the direction of Sabien Technology i.e., Sabien Technology and Beeks TradingLtd go up and down completely randomly.
Pair Corralation between Sabien Technology and Beeks TradingLtd
Assuming the 90 days trading horizon Sabien Technology Group is expected to under-perform the Beeks TradingLtd. In addition to that, Sabien Technology is 1.11 times more volatile than Beeks Trading. It trades about -0.02 of its total potential returns per unit of risk. Beeks Trading is currently generating about 0.05 per unit of volatility. If you would invest 13,200 in Beeks Trading on December 27, 2024 and sell it today you would earn a total of 9,500 from holding Beeks Trading or generate 71.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sabien Technology Group vs. Beeks Trading
Performance |
| Timeline |
| Sabien Technology |
| Beeks TradingLtd |
Sabien Technology and Beeks TradingLtd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sabien Technology and Beeks TradingLtd
The main advantage of trading using opposite Sabien Technology and Beeks TradingLtd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sabien Technology position performs unexpectedly, Beeks TradingLtd 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 Beeks TradingLtd will offset losses from the drop in Beeks TradingLtd's long position.| Sabien Technology vs. Solstad Offshore ASA | Sabien Technology vs. Endeavour Mining Corp | Sabien Technology vs. Pan American Silver | Sabien Technology vs. Advanced Medical Solutions |
| Beeks TradingLtd vs. SupplyMe Capital PLC | Beeks TradingLtd vs. Lloyds Banking Group | Beeks TradingLtd vs. Premier African Minerals | Beeks TradingLtd vs. SANTANDER UK 8 |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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