Correlation Between Infobird and Bm Technologies

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

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

Diversification Opportunities for Infobird and Bm Technologies

0.35

Correlation Coefficient

Infobird  Bm Technologies

Weak diversification

The 3 months correlation between Infobird and BMTX is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Infobird Co and Bm Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bm Technologies and Infobird 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 Infobird Co are associated (or correlated) with Bm Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bm Technologies has no effect on the direction of Infobird i.e., Infobird and Bm Technologies go up and down completely randomly.

Pair Corralation between Infobird and Bm Technologies

Given the investment horizon of 90 days Infobird Co is expected to generate 1.26 times more return on investment than Bm Technologies. However, Infobird is 1.26 times more volatile than Bm Technologies. It trades about 0.16 of its potential returns per unit of risk. Bm Technologies is currently generating about 0.15 per unit of risk. If you would invest  174.00  in Infobird Co on September 2, 2024 and sell it today you would earn a total of  156.00  from holding Infobird Co or generate 89.66% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Infobird Co  vs.  Bm Technologies

Infobird

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Infobird Co are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak fundamental drivers, Infobird exhibited solid returns over the last few months and may actually be approaching a breakup point.

Bm Technologies

Risk-Adjusted Performance

11 of 100

Good

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

Pair Trading with Infobird and Bm Technologies

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

The idea behind Infobird Co and Bm Technologies 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 CEOs Directory module to screen CEOs from public companies around the world.