Correlation Between Brainstorm Cell and SoftBank Group

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Brainstorm Cell and SoftBank Group 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 Brainstorm Cell and SoftBank Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brainstorm Cell Therapeutics and SoftBank Group Corp, you can compare the effects of market volatilities on Brainstorm Cell and SoftBank Group 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 Brainstorm Cell with a short position of SoftBank Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brainstorm Cell and SoftBank Group.

Diversification Opportunities for Brainstorm Cell and SoftBank Group

-0.73
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Brainstorm and SoftBank is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Brainstorm Cell Therapeutics and SoftBank Group Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SoftBank Group Corp and Brainstorm Cell 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 Brainstorm Cell Therapeutics are associated (or correlated) with SoftBank Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SoftBank Group Corp has no effect on the direction of Brainstorm Cell i.e., Brainstorm Cell and SoftBank Group go up and down completely randomly.

Pair Corralation between Brainstorm Cell and SoftBank Group

If you would invest  5,324  in SoftBank Group Corp on September 23, 2024 and sell it today you would earn a total of  97.00  from holding SoftBank Group Corp or generate 1.82% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy31.82%
ValuesDaily Returns

Brainstorm Cell Therapeutics  vs.  SoftBank Group Corp

 Performance 
       Timeline  
Brainstorm Cell Ther 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Brainstorm Cell Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's fundamental indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.
SoftBank Group Corp 

Risk-Adjusted Performance

10 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in SoftBank Group Corp are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, SoftBank Group reported solid returns over the last few months and may actually be approaching a breakup point.

Brainstorm Cell and SoftBank Group Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Brainstorm Cell and SoftBank Group

The main advantage of trading using opposite Brainstorm Cell and SoftBank Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brainstorm Cell position performs unexpectedly, SoftBank Group 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 SoftBank Group will offset losses from the drop in SoftBank Group's long position.
The idea behind Brainstorm Cell Therapeutics and SoftBank Group Corp 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.
Check out your portfolio center.
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.

Other Complementary Tools

Equity Valuation
Check real value of public entities based on technical and fundamental data
Watchlist Optimization
Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm
Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Positions Ratings
Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance
Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators