Benefit Systems Sa Stock Beta
| BFT Stock | 2,640 20.00 0.75% |
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Pair Trading with Benefit Systems
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Benefit Systems position performs unexpectedly, the other equity 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 Benefit Systems will appreciate offsetting losses from the drop in the long position's value.The ability to find closely correlated positions to Benefit Systems could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Benefit Systems when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Benefit Systems - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Benefit Systems SA to buy it.
The correlation of Benefit Systems is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Benefit Systems moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Benefit Systems SA moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Benefit Systems can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Additional Tools for Benefit Stock Analysis
When running Benefit Systems' price analysis, check to measure Benefit Systems' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Benefit Systems is operating at the current time. Most of Benefit Systems' value examination focuses on studying past and present price action to predict the probability of Benefit Systems' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Benefit Systems' price. Additionally, you may evaluate how the addition of Benefit Systems to your portfolios can decrease your overall portfolio volatility.