Correlation Between Bedford Energy and Initio

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

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

Diversification Opportunities for Bedford Energy and Initio

0.0

Correlation Coefficient

Bedford Energy  Initio

Pay attention - limited upside

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

Pair Corralation between Bedford Energy and Initio

If you would invest  0.01  in Bedford Energy on December 28, 2024 and sell it today you would earn a total of  0.00  from holding Bedford Energy or generate 0.0% return on investment over 90 days.

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

Bedford Energy  vs.  Initio Inc

Bedford Energy

Risk-Adjusted Performance

Very Weak

Over the last 90 days Bedford Energy has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, Bedford Energy is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Initio Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Initio Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Bedford Energy and Initio

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

The idea behind Bedford Energy and Initio Inc 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.