Correlation Between Bytes Technology and Bidvest

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

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

Diversification Opportunities for Bytes Technology and Bidvest

0.0

Correlation Coefficient

Bytes Technology  Bidvest

Pay attention - limited upside

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

Pair Corralation between Bytes Technology and Bidvest

If you would invest (100.00) in Bidvest Group on October 9, 2024 and sell it today you would earn a total of  100.00  from holding Bidvest Group or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Bytes Technology  vs.  Bidvest Group

Bytes Technology

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Bytes Technology has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's technical and fundamental indicators remain rather sound which may send shares a bit higher in February 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Bidvest Group

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Bytes Technology and Bidvest

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

The idea behind Bytes Technology and Bidvest Group 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.