Correlation Between Stradim Espace and Bilendi

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

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

Diversification Opportunities for Stradim Espace and Bilendi

0.39

Correlation Coefficient

Stradim Espace  Bilendi

Weak diversification

The 3 months correlation between Stradim and Bilendi is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Stradim Espace Finances and Bilendi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bilendi and Stradim Espace 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 Stradim Espace Finances are associated (or correlated) with Bilendi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bilendi has no effect on the direction of Stradim Espace i.e., Stradim Espace and Bilendi go up and down completely randomly.

Pair Corralation between Stradim Espace and Bilendi

Assuming the 90 days trading horizon Stradim Espace Finances is expected to generate 2.22 times more return on investment than Bilendi. However, Stradim Espace is 2.22 times more volatile than Bilendi. It trades about 0.02 of its potential returns per unit of risk. Bilendi is currently generating about -0.02 per unit of risk. If you would invest  674.00  in Stradim Espace Finances on September 26, 2024 and sell it today you would lose (114.00) from holding Stradim Espace Finances or give up 16.91% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	96.04%
Values	Daily Returns

Stradim Espace Finances  vs.  Bilendi

Stradim Espace Finances

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Stradim Espace Finances are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Stradim Espace may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Bilendi

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Bilendi are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Bilendi reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Stradim Espace and Bilendi

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

The idea behind Stradim Espace Finances and Bilendi 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.