Correlation Between Beamr Imaging and NCino

Can any of the company-specific risk be diversified away by investing in both Beamr Imaging and NCino 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 NCino 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 nCino Inc, you can compare the effects of market volatilities on Beamr Imaging and NCino 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 NCino. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beamr Imaging and NCino.

Diversification Opportunities for Beamr Imaging and NCino

-0.78

Correlation Coefficient

Beamr Imaging  NCino

Pay attention - limited upside

The 3 months correlation between Beamr and NCino is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Beamr Imaging Ltd and nCino Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on nCino Inc 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 NCino. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of nCino Inc has no effect on the direction of Beamr Imaging i.e., Beamr Imaging and NCino go up and down completely randomly.

Pair Corralation between Beamr Imaging and NCino

Considering the 90-day investment horizon Beamr Imaging is expected to generate 1.26 times less return on investment than NCino. In addition to that, Beamr Imaging is 1.89 times more volatile than nCino Inc. It trades about 0.07 of its total potential returns per unit of risk. nCino Inc is currently generating about 0.16 per unit of volatility. If you would invest  2,910  in nCino Inc on September 12, 2024 and sell it today you would earn a total of  731.00  from holding nCino Inc or generate 25.12% return on investment over 90 days.

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

Beamr Imaging Ltd  vs.  nCino Inc

Beamr Imaging

Risk-Adjusted Performance

5 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Beamr Imaging Ltd are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak primary indicators, Beamr Imaging reported solid returns over the last few months and may actually be approaching a breakup point.

nCino Inc

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in nCino Inc are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, NCino displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Beamr Imaging and NCino

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

The idea behind Beamr Imaging Ltd and nCino 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.

Check out your portfolio center.

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 Anywhere module to track or share privately all of your investments from the convenience of any device.