Correlation Between BingEx and Reservoir Media

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

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

Diversification Opportunities for BingEx and Reservoir Media

-0.04

Correlation Coefficient

BingEx  Reservoir Media

Good diversification

The 3 months correlation between BingEx and Reservoir is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding BingEx and Reservoir Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Reservoir Media and BingEx 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 BingEx are associated (or correlated) with Reservoir Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Reservoir Media has no effect on the direction of BingEx i.e., BingEx and Reservoir Media go up and down completely randomly.

Pair Corralation between BingEx and Reservoir Media

Considering the 90-day investment horizon BingEx is expected to generate 2.33 times more return on investment than Reservoir Media. However, BingEx is 2.33 times more volatile than Reservoir Media. It trades about 0.01 of its potential returns per unit of risk. Reservoir Media is currently generating about -0.18 per unit of risk. If you would invest  803.00  in BingEx on December 20, 2024 and sell it today you would lose (24.00) from holding BingEx or give up 2.99% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

BingEx  vs.  Reservoir Media

BingEx

Risk-Adjusted Performance

Very Weak

Over the last 90 days BingEx has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong essential indicators, BingEx is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Reservoir Media

Risk-Adjusted Performance

Very Weak

Over the last 90 days Reservoir Media has generated negative risk-adjusted returns adding no value to investors with long positions. Even with inconsistent performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with BingEx and Reservoir Media

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

The idea behind BingEx and Reservoir Media 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..