Correlation Between Bm Technologies and WETG Old
Can any of the company-specific risk be diversified away by investing in both Bm Technologies and WETG Old 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 Bm Technologies and WETG Old into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bm Technologies and WETG Old, you can compare the effects of market volatilities on Bm Technologies and WETG Old 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 Bm Technologies with a short position of WETG Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bm Technologies and WETG Old.
Diversification Opportunities for Bm Technologies and WETG Old
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BMTX and WETG is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bm Technologies and WETG Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WETG Old and Bm Technologies 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 Bm Technologies are associated (or correlated) with WETG Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WETG Old has no effect on the direction of Bm Technologies i.e., Bm Technologies and WETG Old go up and down completely randomly.
Pair Corralation between Bm Technologies and WETG Old
If you would invest 471.00 in Bm Technologies on December 18, 2024 and sell it today you would earn a total of 29.00 from holding Bm Technologies or generate 6.16% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Bm Technologies vs. WETG Old
Performance |
Timeline |
Bm Technologies |
Risk-Adjusted Performance
Very Strong
Weak | Strong |
WETG Old |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Bm Technologies and WETG Old Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bm Technologies and WETG Old
The main advantage of trading using opposite Bm Technologies and WETG Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bm Technologies position performs unexpectedly, WETG Old 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 WETG Old will offset losses from the drop in WETG Old's long position.Bm Technologies vs. Where Food Comes | Bm Technologies vs. eGain | Bm Technologies vs. Research Solutions | Bm Technologies vs. Infobird Co |
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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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