Correlation Between SupplyMe Capital and BH Macro
Can any of the company-specific risk be diversified away by investing in both SupplyMe Capital and BH Macro 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 SupplyMe Capital and BH Macro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SupplyMe Capital PLC and BH Macro Limited, you can compare the effects of market volatilities on SupplyMe Capital and BH Macro 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 SupplyMe Capital with a short position of BH Macro. Check out your portfolio center. Please also check ongoing floating volatility patterns of SupplyMe Capital and BH Macro.
Diversification Opportunities for SupplyMe Capital and BH Macro
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SupplyMe and BHMU is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding SupplyMe Capital PLC and BH Macro Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BH Macro Limited and SupplyMe Capital 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 SupplyMe Capital PLC are associated (or correlated) with BH Macro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BH Macro Limited has no effect on the direction of SupplyMe Capital i.e., SupplyMe Capital and BH Macro go up and down completely randomly.
Pair Corralation between SupplyMe Capital and BH Macro
Assuming the 90 days trading horizon SupplyMe Capital PLC is expected to under-perform the BH Macro. In addition to that, SupplyMe Capital is 6.28 times more volatile than BH Macro Limited. It trades about -0.04 of its total potential returns per unit of risk. BH Macro Limited is currently generating about -0.01 per unit of volatility. If you would invest 467.00 in BH Macro Limited on September 5, 2024 and sell it today you would lose (49.00) from holding BH Macro Limited or give up 10.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
SupplyMe Capital PLC vs. BH Macro Limited
Performance |
| Timeline |
| SupplyMe Capital PLC |
| BH Macro Limited |
SupplyMe Capital and BH Macro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SupplyMe Capital and BH Macro
The main advantage of trading using opposite SupplyMe Capital and BH Macro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SupplyMe Capital position performs unexpectedly, BH Macro 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 BH Macro will offset losses from the drop in BH Macro's long position.| SupplyMe Capital vs. Gaztransport et Technigaz | SupplyMe Capital vs. mobilezone holding AG | SupplyMe Capital vs. Trainline Plc | SupplyMe Capital vs. EVS Broadcast Equipment |
| BH Macro vs. Trainline Plc | BH Macro vs. Roadside Real Estate | BH Macro vs. JB Hunt Transport | BH Macro vs. EVS Broadcast Equipment |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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