Correlation Between Beamr Imaging and Zenvia

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

Diversification Opportunities for Beamr Imaging and Zenvia

0.6

Correlation Coefficient

Beamr Imaging  Zenvia

Poor diversification

The 3 months correlation between Beamr and Zenvia is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Beamr Imaging Ltd and Zenvia Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zenvia 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 Zenvia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zenvia Inc has no effect on the direction of Beamr Imaging i.e., Beamr Imaging and Zenvia go up and down completely randomly.

Pair Corralation between Beamr Imaging and Zenvia

Considering the 90-day investment horizon Beamr Imaging Ltd is expected to generate 0.96 times more return on investment than Zenvia. However, Beamr Imaging Ltd is 1.05 times less risky than Zenvia. It trades about 0.07 of its potential returns per unit of risk. Zenvia Inc is currently generating about 0.05 per unit of risk. If you would invest  352.00  in Beamr Imaging Ltd on September 12, 2024 and sell it today you would earn a total of  48.00  from holding Beamr Imaging Ltd or generate 13.64% return on investment over 90 days.

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

Beamr Imaging Ltd  vs.  Zenvia 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.

Zenvia Inc

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Zenvia Inc are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Zenvia showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Beamr Imaging and Zenvia

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

The idea behind Beamr Imaging Ltd and Zenvia 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.

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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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.