Correlation Between Electronic Systems and BeWhere Holdings

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

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

Diversification Opportunities for Electronic Systems and BeWhere Holdings

0.4

Correlation Coefficient

Electronic Systems  BeWhere Holdings

Very weak diversification

The 3 months correlation between Electronic and BeWhere is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Electronic Systems Technology and BeWhere Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BeWhere Holdings and Electronic 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 Electronic Systems Technology are associated (or correlated) with BeWhere Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BeWhere Holdings has no effect on the direction of Electronic Systems i.e., Electronic Systems and BeWhere Holdings go up and down completely randomly.

Pair Corralation between Electronic Systems and BeWhere Holdings

Given the investment horizon of 90 days Electronic Systems Technology is expected to generate 2.28 times more return on investment than BeWhere Holdings. However, Electronic Systems is 2.28 times more volatile than BeWhere Holdings. It trades about 0.01 of its potential returns per unit of risk. BeWhere Holdings is currently generating about 0.02 per unit of risk. If you would invest  10.00  in Electronic Systems Technology on December 30, 2024 and sell it today you would lose (1.00) from holding Electronic Systems Technology or give up 10.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.41%
Values	Daily Returns

Electronic Systems Technology  vs.  BeWhere Holdings

Electronic Systems

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Electronic Systems Technology are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, Electronic Systems may actually be approaching a critical reversion point that can send shares even higher in April 2025.

BeWhere Holdings

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in BeWhere Holdings are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable technical and fundamental indicators, BeWhere Holdings is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Electronic Systems and BeWhere Holdings

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

The idea behind Electronic Systems Technology and BeWhere Holdings 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.