Correlation Between Western Acquisition and Binah Capital
Can any of the company-specific risk be diversified away by investing in both Western Acquisition and Binah Capital 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 Western Acquisition and Binah Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Western Acquisition Ventures and Binah Capital Group,, you can compare the effects of market volatilities on Western Acquisition and Binah Capital 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 Western Acquisition with a short position of Binah Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Acquisition and Binah Capital.
Diversification Opportunities for Western Acquisition and Binah Capital
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Western and Binah is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Western Acquisition Ventures and Binah Capital Group, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Binah Capital Group, and Western Acquisition 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 Western Acquisition Ventures are associated (or correlated) with Binah Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Binah Capital Group, has no effect on the direction of Western Acquisition i.e., Western Acquisition and Binah Capital go up and down completely randomly.
Pair Corralation between Western Acquisition and Binah Capital
If you would invest 212.00 in Binah Capital Group, on September 2, 2024 and sell it today you would earn a total of 46.00 from holding Binah Capital Group, or generate 21.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Western Acquisition Ventures vs. Binah Capital Group,
Performance |
| Timeline |
| Western Acquisition |
| Binah Capital Group, |
Western Acquisition and Binah Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Acquisition and Binah Capital
The main advantage of trading using opposite Western Acquisition and Binah Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Acquisition position performs unexpectedly, Binah Capital 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 Binah Capital will offset losses from the drop in Binah Capital's long position.| Western Acquisition vs. Dave Busters Entertainment | Western Acquisition vs. Pinterest | Western Acquisition vs. Radcom | Western Acquisition vs. Kite Realty Group |
| Binah Capital vs. NETGEAR | Binah Capital vs. Pinterest | Binah Capital vs. Allegiant Travel | Binah Capital vs. Delta Air Lines |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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