Correlation Between Beamr Imaging and Exela Technologies

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

Diversification Opportunities for Beamr Imaging and Exela Technologies

-0.18

Correlation Coefficient

Beamr Imaging  Exela Technologies

Good diversification

The 3 months correlation between Beamr and Exela is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Beamr Imaging Ltd and Exela Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exela Technologies 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 Exela Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exela Technologies has no effect on the direction of Beamr Imaging i.e., Beamr Imaging and Exela Technologies go up and down completely randomly.

Pair Corralation between Beamr Imaging and Exela Technologies

If you would invest  286.00  in Beamr Imaging Ltd on September 13, 2024 and sell it today you would earn a total of  101.00  from holding Beamr Imaging Ltd or generate 35.31% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	9.09%
Values	Daily Returns

Beamr Imaging Ltd  vs.  Exela Technologies

Beamr Imaging

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Beamr Imaging Ltd are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Even with relatively abnormal primary indicators, Beamr Imaging may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Exela Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Exela Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's essential indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Beamr Imaging and Exela Technologies

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

The idea behind Beamr Imaging Ltd and Exela Technologies 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.