Correlation Between Broadwind and SAFEROADS HLDGS

Can any of the company-specific risk be diversified away by investing in both Broadwind and SAFEROADS HLDGS 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 Broadwind and SAFEROADS HLDGS into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Broadwind and SAFEROADS HLDGS, you can compare the effects of market volatilities on Broadwind and SAFEROADS HLDGS 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 Broadwind with a short position of SAFEROADS HLDGS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Broadwind and SAFEROADS HLDGS.

Diversification Opportunities for Broadwind and SAFEROADS HLDGS

0.0

Correlation Coefficient

Broadwind  SAFEROADS HLDGS

Pay attention - limited upside

The 3 months correlation between Broadwind and SAFEROADS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Broadwind and SAFEROADS HLDGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SAFEROADS HLDGS and Broadwind 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 Broadwind are associated (or correlated) with SAFEROADS HLDGS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SAFEROADS HLDGS has no effect on the direction of Broadwind i.e., Broadwind and SAFEROADS HLDGS go up and down completely randomly.

Pair Corralation between Broadwind and SAFEROADS HLDGS

If you would invest  13.00  in SAFEROADS HLDGS on December 24, 2024 and sell it today you would earn a total of  0.00  from holding SAFEROADS HLDGS or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.33%
Values	Daily Returns

Broadwind  vs.  SAFEROADS HLDGS

Broadwind

Risk-Adjusted Performance

Very Weak

Over the last 90 days Broadwind has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

SAFEROADS HLDGS

Risk-Adjusted Performance

Very Weak

Over the last 90 days SAFEROADS HLDGS has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, SAFEROADS HLDGS is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Broadwind and SAFEROADS HLDGS

The main advantage of trading using opposite Broadwind and SAFEROADS HLDGS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Broadwind position performs unexpectedly, SAFEROADS HLDGS 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 SAFEROADS HLDGS will offset losses from the drop in SAFEROADS HLDGS's long position.

The idea behind Broadwind and SAFEROADS HLDGS pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.