Correlation Between AirIQ and Bewhere Holdings

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

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

Diversification Opportunities for AirIQ and Bewhere Holdings

-0.14

Correlation Coefficient

AirIQ  Bewhere Holdings

Good diversification

The 3 months correlation between AirIQ and Bewhere is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding AirIQ Inc and Bewhere Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bewhere Holdings and AirIQ 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 AirIQ Inc 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 AirIQ i.e., AirIQ and Bewhere Holdings go up and down completely randomly.

Pair Corralation between AirIQ and Bewhere Holdings

Given the investment horizon of 90 days AirIQ Inc is expected to generate 2.31 times more return on investment than Bewhere Holdings. However, AirIQ is 2.31 times more volatile than Bewhere Holdings. It trades about -0.02 of its potential returns per unit of risk. Bewhere Holdings is currently generating about -0.29 per unit of risk. If you would invest  43.00  in AirIQ Inc on September 3, 2024 and sell it today you would lose (3.00) from holding AirIQ Inc or give up 6.98% of portfolio value over 90 days.

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

AirIQ Inc  vs.  Bewhere Holdings

AirIQ Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days AirIQ Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest abnormal performance, the Stock's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Bewhere Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Bewhere Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Bewhere Holdings is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with AirIQ and Bewhere Holdings

The main advantage of trading using opposite AirIQ and Bewhere Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AirIQ 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 AirIQ Inc 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.