Correlation Between Beston Global and Sims

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

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

Diversification Opportunities for Beston Global and Sims

0.0

Correlation Coefficient

Beston Global  Sims

Pay attention - limited upside

The 3 months correlation between Beston and Sims is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Beston Global Food and Sims in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sims and Beston Global 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 Beston Global Food are associated (or correlated) with Sims. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sims has no effect on the direction of Beston Global i.e., Beston Global and Sims go up and down completely randomly.

Pair Corralation between Beston Global and Sims

If you would invest  1,105  in Sims on September 17, 2024 and sell it today you would earn a total of  168.00  from holding Sims or generate 15.2% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Beston Global Food  vs.  Sims

Beston Global Food

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Beston Global Food has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable fundamental indicators, Beston Global is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Sims

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Sims are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain primary indicators, Sims unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Beston Global and Sims

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

The idea behind Beston Global Food and Sims 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.