Correlation Between CurveBeam and Ebr Systems

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

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

Diversification Opportunities for CurveBeam and Ebr Systems

0.24

Correlation Coefficient

CurveBeam  Ebr Systems

Modest diversification

The 3 months correlation between CurveBeam and Ebr is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding CurveBeam AI Limited and Ebr Systems CDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ebr Systems CDR and CurveBeam 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 CurveBeam AI Limited are associated (or correlated) with Ebr Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ebr Systems CDR has no effect on the direction of CurveBeam i.e., CurveBeam and Ebr Systems go up and down completely randomly.

Pair Corralation between CurveBeam and Ebr Systems

Assuming the 90 days trading horizon CurveBeam AI Limited is expected to under-perform the Ebr Systems. In addition to that, CurveBeam is 1.72 times more volatile than Ebr Systems CDR. It trades about -0.01 of its total potential returns per unit of risk. Ebr Systems CDR is currently generating about 0.07 per unit of volatility. If you would invest  46.00  in Ebr Systems CDR on October 9, 2024 and sell it today you would earn a total of  91.00  from holding Ebr Systems CDR or generate 197.83% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	68.03%
Values	Daily Returns

CurveBeam AI Limited  vs.  Ebr Systems CDR

CurveBeam AI Limited

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in CurveBeam AI Limited are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain fundamental drivers, CurveBeam unveiled solid returns over the last few months and may actually be approaching a breakup point.

Ebr Systems CDR

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Ebr Systems CDR are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Ebr Systems unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CurveBeam and Ebr Systems

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

The idea behind CurveBeam AI Limited and Ebr Systems CDR 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.