Correlation Between BSQUARE and Mojo Data

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

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

Diversification Opportunities for BSQUARE and Mojo Data

-0.43

Correlation Coefficient

BSQUARE  Mojo Data

Very good diversification

The 3 months correlation between BSQUARE and Mojo is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding BSQUARE and Mojo Data Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mojo Data Solutions and BSQUARE 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 BSQUARE are associated (or correlated) with Mojo Data. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mojo Data Solutions has no effect on the direction of BSQUARE i.e., BSQUARE and Mojo Data go up and down completely randomly.

Pair Corralation between BSQUARE and Mojo Data

If you would invest  0.01  in Mojo Data Solutions on October 24, 2024 and sell it today you would earn a total of  0.06  from holding Mojo Data Solutions or generate 600.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	5.0%
Values	Daily Returns

BSQUARE  vs.  Mojo Data Solutions

BSQUARE

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days BSQUARE has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, BSQUARE is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Mojo Data Solutions

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Mojo Data Solutions are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak fundamental indicators, Mojo Data unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with BSQUARE and Mojo Data

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

The idea behind BSQUARE and Mojo Data Solutions 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.