Correlation Between Beamr Imaging and VTEX

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

Diversification Opportunities for Beamr Imaging and VTEX

0.73

Correlation Coefficient

Beamr Imaging  VTEX

Poor diversification

The 3 months correlation between Beamr and VTEX is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Beamr Imaging Ltd and VTEX in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VTEX 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 VTEX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VTEX has no effect on the direction of Beamr Imaging i.e., Beamr Imaging and VTEX go up and down completely randomly.

Pair Corralation between Beamr Imaging and VTEX

Considering the 90-day investment horizon Beamr Imaging Ltd is expected to generate 2.2 times more return on investment than VTEX. However, Beamr Imaging is 2.2 times more volatile than VTEX. It trades about 0.0 of its potential returns per unit of risk. VTEX is currently generating about -0.06 per unit of risk. If you would invest  325.00  in Beamr Imaging Ltd on September 5, 2024 and sell it today you would lose (19.00) from holding Beamr Imaging Ltd or give up 5.85% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.44%
Values	Daily Returns

Beamr Imaging Ltd  vs.  VTEX

Beamr Imaging

Risk-Adjusted Performance

0 of 100

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 relatively invariable primary indicators, Beamr Imaging is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

VTEX

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days VTEX has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest abnormal performance, the Stock's technical and fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Beamr Imaging and VTEX

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

The idea behind Beamr Imaging Ltd and VTEX 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 Transaction History module to view history of all your transactions and understand their impact on performance.