Correlation Between Beyond Commerce and Fluent

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

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

Diversification Opportunities for Beyond Commerce and Fluent

0.28

Correlation Coefficient

Beyond Commerce  Fluent

Modest diversification

The 3 months correlation between Beyond and Fluent is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Beyond Commerce and Fluent Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fluent Inc and Beyond Commerce 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 Beyond Commerce are associated (or correlated) with Fluent. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fluent Inc has no effect on the direction of Beyond Commerce i.e., Beyond Commerce and Fluent go up and down completely randomly.

Pair Corralation between Beyond Commerce and Fluent

Given the investment horizon of 90 days Beyond Commerce is expected to generate 10.22 times more return on investment than Fluent. However, Beyond Commerce is 10.22 times more volatile than Fluent Inc. It trades about 0.13 of its potential returns per unit of risk. Fluent Inc is currently generating about -0.05 per unit of risk. If you would invest  0.02  in Beyond Commerce on December 28, 2024 and sell it today you would lose (0.01) from holding Beyond Commerce or give up 50.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.36%
Values	Daily Returns

Beyond Commerce  vs.  Fluent Inc

Beyond Commerce

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Beyond Commerce are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating basic indicators, Beyond Commerce exhibited solid returns over the last few months and may actually be approaching a breakup point.

Fluent Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Fluent Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Beyond Commerce and Fluent

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

The idea behind Beyond Commerce and Fluent Inc 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.