Correlation Between BC Technology and Beamr Imaging

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

By analyzing existing cross correlation between BC Technology Group and Beamr Imaging Ltd, you can compare the effects of market volatilities on BC Technology and Beamr Imaging 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 BC Technology with a short position of Beamr Imaging. Check out your portfolio center. Please also check ongoing floating volatility patterns of BC Technology and Beamr Imaging.

Diversification Opportunities for BC Technology and Beamr Imaging

0.38

Correlation Coefficient

BC Technology  Beamr Imaging

Weak diversification

The 3 months correlation between BCTCF and Beamr is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding BC Technology Group and Beamr Imaging Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beamr Imaging and BC Technology 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 BC Technology Group are associated (or correlated) with Beamr Imaging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beamr Imaging has no effect on the direction of BC Technology i.e., BC Technology and Beamr Imaging go up and down completely randomly.

Pair Corralation between BC Technology and Beamr Imaging

If you would invest  405.00  in Beamr Imaging Ltd on October 10, 2024 and sell it today you would earn a total of  51.00  from holding Beamr Imaging Ltd or generate 12.59% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	95.24%
Values	Daily Returns

BC Technology Group  vs.  Beamr Imaging Ltd

BC Technology Group

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in BC Technology Group are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak fundamental indicators, BC Technology reported solid returns over the last few months and may actually be approaching a breakup point.

Beamr Imaging

Risk-Adjusted Performance

7 of 100

OK

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

Pair Trading with BC Technology and Beamr Imaging

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

The idea behind BC Technology Group and Beamr Imaging Ltd 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.