Correlation Between Ebr Systems and CurveBeam

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

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

Diversification Opportunities for Ebr Systems and CurveBeam

0.03

Correlation Coefficient

Ebr Systems  CurveBeam

Significant diversification

The 3 months correlation between Ebr and CurveBeam is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Ebr Systems CDR and CurveBeam AI Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CurveBeam AI Limited and Ebr Systems 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 Ebr Systems CDR are associated (or correlated) with CurveBeam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CurveBeam AI Limited has no effect on the direction of Ebr Systems i.e., Ebr Systems and CurveBeam go up and down completely randomly.

Pair Corralation between Ebr Systems and CurveBeam

Assuming the 90 days trading horizon Ebr Systems CDR is expected to generate 0.62 times more return on investment than CurveBeam. However, Ebr Systems CDR is 1.62 times less risky than CurveBeam. It trades about 0.24 of its potential returns per unit of risk. CurveBeam AI Limited is currently generating about 0.04 per unit of risk. If you would invest  100.00  in Ebr Systems CDR on December 21, 2024 and sell it today you would earn a total of  89.00  from holding Ebr Systems CDR or generate 89.0% return on investment over 90 days.

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

Ebr Systems CDR  vs.  CurveBeam AI Limited

Ebr Systems CDR

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Ebr Systems CDR are ranked lower than 18 (%) 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.

CurveBeam AI Limited

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in CurveBeam AI Limited are ranked lower than 2 (%) 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.

Pair Trading with Ebr Systems and CurveBeam

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

The idea behind Ebr Systems CDR and CurveBeam AI Limited 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.