Correlation Between Belden and Bolt Projects

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

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

Diversification Opportunities for Belden and Bolt Projects

-0.5

Correlation Coefficient

Belden  Bolt Projects

Very good diversification

The 3 months correlation between Belden and Bolt is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Belden Inc and Bolt Projects Holdings, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bolt Projects Holdings, and Belden 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 Belden Inc are associated (or correlated) with Bolt Projects. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bolt Projects Holdings, has no effect on the direction of Belden i.e., Belden and Bolt Projects go up and down completely randomly.

Pair Corralation between Belden and Bolt Projects

Considering the 90-day investment horizon Belden Inc is expected to under-perform the Bolt Projects. But the stock apears to be less risky and, when comparing its historical volatility, Belden Inc is 22.05 times less risky than Bolt Projects. The stock trades about -0.09 of its potential returns per unit of risk. The Bolt Projects Holdings, is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  2.00  in Bolt Projects Holdings, on December 19, 2024 and sell it today you would earn a total of  1.99  from holding Bolt Projects Holdings, or generate 99.5% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	61.02%
Values	Daily Returns

Belden Inc  vs.  Bolt Projects Holdings,

Belden Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Belden Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Bolt Projects Holdings,

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Bolt Projects Holdings, are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of fairly inconsistent forward-looking signals, Bolt Projects showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Belden and Bolt Projects

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

The idea behind Belden Inc and Bolt Projects Holdings, 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.