Correlation Between Bce and Minehub Technologies

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

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

Diversification Opportunities for Bce and Minehub Technologies

0.94

Correlation Coefficient

Bce  Minehub Technologies

Almost no diversification

The 3 months correlation between Bce and Minehub is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Bce Inc Pref and Minehub Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Minehub Technologies and Bce 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 Bce Inc Pref are associated (or correlated) with Minehub Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Minehub Technologies has no effect on the direction of Bce i.e., Bce and Minehub Technologies go up and down completely randomly.

Pair Corralation between Bce and Minehub Technologies

Assuming the 90 days trading horizon Bce is expected to generate 14.93 times less return on investment than Minehub Technologies. But when comparing it to its historical volatility, Bce Inc Pref is 9.34 times less risky than Minehub Technologies. It trades about 0.13 of its potential returns per unit of risk. Minehub Technologies is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest  28.00  in Minehub Technologies on December 23, 2024 and sell it today you would earn a total of  35.00  from holding Minehub Technologies or generate 125.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Bce Inc Pref  vs.  Minehub Technologies

Bce Inc Pref

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Bce Inc Pref are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unfluctuating technical and fundamental indicators, Bce may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Minehub Technologies

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Minehub Technologies are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Minehub Technologies showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Bce and Minehub Technologies

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

The idea behind Bce Inc Pref and Minehub Technologies 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.