Correlation Between Beamr Imaging and Trust Stamp

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

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

Diversification Opportunities for Beamr Imaging and Trust Stamp

0.83

Correlation Coefficient

Beamr Imaging  Trust Stamp

Very poor diversification

The 3 months correlation between Beamr and Trust is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Beamr Imaging Ltd and Trust Stamp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trust Stamp and Beamr Imaging 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 Beamr Imaging Ltd are associated (or correlated) with Trust Stamp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trust Stamp has no effect on the direction of Beamr Imaging i.e., Beamr Imaging and Trust Stamp go up and down completely randomly.

Pair Corralation between Beamr Imaging and Trust Stamp

Considering the 90-day investment horizon Beamr Imaging Ltd is expected to generate 0.77 times more return on investment than Trust Stamp. However, Beamr Imaging Ltd is 1.29 times less risky than Trust Stamp. It trades about -0.24 of its potential returns per unit of risk. Trust Stamp is currently generating about -0.49 per unit of risk. If you would invest  579.00  in Beamr Imaging Ltd on December 28, 2024 and sell it today you would lose (336.00) from holding Beamr Imaging Ltd or give up 58.03% of portfolio value over 90 days.

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

Beamr Imaging Ltd  vs.  Trust Stamp

Beamr Imaging

Risk-Adjusted Performance

Very Weak

Over the last 90 days Beamr Imaging Ltd has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's primary indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Trust Stamp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Trust Stamp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Beamr Imaging and Trust Stamp

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

The idea behind Beamr Imaging Ltd and Trust Stamp 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.