Correlation Between Beamr Imaging and SoundHound

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

Diversification Opportunities for Beamr Imaging and SoundHound

0.84

Correlation Coefficient

Beamr Imaging  SoundHound

Very poor diversification

The 3 months correlation between Beamr and SoundHound is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Beamr Imaging Ltd and SoundHound AI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SoundHound AI 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 SoundHound. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SoundHound AI has no effect on the direction of Beamr Imaging i.e., Beamr Imaging and SoundHound go up and down completely randomly.

Pair Corralation between Beamr Imaging and SoundHound

Considering the 90-day investment horizon Beamr Imaging Ltd is expected to under-perform the SoundHound. But the stock apears to be less risky and, when comparing its historical volatility, Beamr Imaging Ltd is 1.45 times less risky than SoundHound. The stock trades about -0.25 of its potential returns per unit of risk. The SoundHound AI is currently generating about -0.17 of returns per unit of risk over similar time horizon. If you would invest  2,268  in SoundHound AI on December 29, 2024 and sell it today you would lose (1,418) from holding SoundHound AI or give up 62.52% 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.  SoundHound AI

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.

SoundHound AI

Risk-Adjusted Performance

Very Weak

Over the last 90 days SoundHound AI has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal 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 Beamr Imaging and SoundHound

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

The idea behind Beamr Imaging Ltd and SoundHound AI 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.