Correlation Between Beryl 8 and II Group

Can any of the company-specific risk be diversified away by investing in both Beryl 8 and II Group 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 Beryl 8 and II Group into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Beryl 8 Plus and II Group Public, you can compare the effects of market volatilities on Beryl 8 and II Group 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 Beryl 8 with a short position of II Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beryl 8 and II Group.

Diversification Opportunities for Beryl 8 and II Group

0.82

Correlation Coefficient

Beryl 8  II Group

Very poor diversification

The 3 months correlation between Beryl and IIG is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Beryl 8 Plus and II Group Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on II Group Public and Beryl 8 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 Beryl 8 Plus are associated (or correlated) with II Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of II Group Public has no effect on the direction of Beryl 8 i.e., Beryl 8 and II Group go up and down completely randomly.

Pair Corralation between Beryl 8 and II Group

Assuming the 90 days trading horizon Beryl 8 Plus is expected to generate 0.87 times more return on investment than II Group. However, Beryl 8 Plus is 1.15 times less risky than II Group. It trades about -0.2 of its potential returns per unit of risk. II Group Public is currently generating about -0.22 per unit of risk. If you would invest  1,910  in Beryl 8 Plus on October 22, 2024 and sell it today you would lose (660.00) from holding Beryl 8 Plus or give up 34.55% of portfolio value over 90 days.

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

Beryl 8 Plus  vs.  II Group Public

Beryl 8 Plus

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Beryl 8 Plus has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in February 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

II Group Public

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days II Group Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's technical and fundamental indicators remain quite persistent which may send shares a bit higher in February 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Beryl 8 and II Group

The main advantage of trading using opposite Beryl 8 and II Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beryl 8 position performs unexpectedly, II Group 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 II Group will offset losses from the drop in II Group's long position.

The idea behind Beryl 8 Plus and II Group Public 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.