Correlation Between Bion Environmental and Eestech

Can any of the company-specific risk be diversified away by investing in both Bion Environmental and Eestech 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 Bion Environmental and Eestech into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Bion Environmental Technologies and Eestech, you can compare the effects of market volatilities on Bion Environmental and Eestech 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 Bion Environmental with a short position of Eestech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bion Environmental and Eestech.

Diversification Opportunities for Bion Environmental and Eestech

0.0

Correlation Coefficient

Bion Environmental  Eestech

Pay attention - limited upside

The 3 months correlation between Bion and Eestech is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bion Environmental Technologie and Eestech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eestech and Bion Environmental 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 Bion Environmental Technologies are associated (or correlated) with Eestech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eestech has no effect on the direction of Bion Environmental i.e., Bion Environmental and Eestech go up and down completely randomly.

Pair Corralation between Bion Environmental and Eestech

If you would invest  0.04  in Eestech on December 28, 2024 and sell it today you would earn a total of  0.00  from holding Eestech or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	95.24%
Values	Daily Returns

Bion Environmental Technologie  vs.  Eestech

Bion Environmental

Risk-Adjusted Performance

Very Weak

Over the last 90 days Bion Environmental Technologies 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 technical and fundamental indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Eestech

Risk-Adjusted Performance

Very Weak

Over the last 90 days Eestech has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Eestech is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Bion Environmental and Eestech

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

The idea behind Bion Environmental Technologies and Eestech 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.