Correlation Between Ballistic Recovery and Corfacts

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

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

Diversification Opportunities for Ballistic Recovery and Corfacts

1.0

Correlation Coefficient

Ballistic Recovery  Corfacts

No risk reduction

The 3 months correlation between Ballistic and Corfacts is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Ballistic Recovery Systems and Corfacts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Corfacts and Ballistic Recovery 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 Ballistic Recovery Systems are associated (or correlated) with Corfacts. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Corfacts has no effect on the direction of Ballistic Recovery i.e., Ballistic Recovery and Corfacts go up and down completely randomly.

Pair Corralation between Ballistic Recovery and Corfacts

If you would invest  0.01  in Corfacts on December 30, 2024 and sell it today you would earn a total of  0.00  from holding Corfacts or generate 0.0% return on investment over 90 days.

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

Ballistic Recovery Systems  vs.  Corfacts

Ballistic Recovery

Risk-Adjusted Performance

Very Weak

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

Corfacts

Risk-Adjusted Performance

Very Weak

Over the last 90 days Corfacts has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, Corfacts is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Ballistic Recovery and Corfacts

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

The idea behind Ballistic Recovery Systems and Corfacts 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 Stocks Directory module to find actively traded stocks across global markets.