Correlation Between BizLink Holding and Primax Electronics
Can any of the company-specific risk be diversified away by investing in both BizLink Holding and Primax Electronics 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 BizLink Holding and Primax Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BizLink Holding and Primax Electronics, you can compare the effects of market volatilities on BizLink Holding and Primax Electronics 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 BizLink Holding with a short position of Primax Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of BizLink Holding and Primax Electronics.
Diversification Opportunities for BizLink Holding and Primax Electronics
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between BizLink and Primax is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding BizLink Holding and Primax Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Primax Electronics and BizLink Holding 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 BizLink Holding are associated (or correlated) with Primax Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Primax Electronics has no effect on the direction of BizLink Holding i.e., BizLink Holding and Primax Electronics go up and down completely randomly.
Pair Corralation between BizLink Holding and Primax Electronics
Assuming the 90 days trading horizon BizLink Holding is expected to under-perform the Primax Electronics. In addition to that, BizLink Holding is 2.21 times more volatile than Primax Electronics. It trades about -0.09 of its total potential returns per unit of risk. Primax Electronics is currently generating about 0.09 per unit of volatility. If you would invest 8,030 in Primax Electronics on December 4, 2024 and sell it today you would earn a total of 620.00 from holding Primax Electronics or generate 7.72% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 98.21% |
Values | Daily Returns |
BizLink Holding vs. Primax Electronics
Performance |
Timeline |
BizLink Holding |
Primax Electronics |
BizLink Holding and Primax Electronics Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with BizLink Holding and Primax Electronics
The main advantage of trading using opposite BizLink Holding and Primax Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BizLink Holding position performs unexpectedly, Primax Electronics 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 Primax Electronics will offset losses from the drop in Primax Electronics' long position.BizLink Holding vs. Hota Industrial Mfg | BizLink Holding vs. Chroma ATE | BizLink Holding vs. Sinbon Electronics Co | BizLink Holding vs. Tong Hsing Electronic |
Primax Electronics vs. Flexium Interconnect | Primax Electronics vs. Radiant Opto Electronics Corp | Primax Electronics vs. Merry Electronics Co | Primax Electronics vs. BizLink Holding |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
Insider Screener Find insiders across different sectors to evaluate their impact on performance |