Correlation Between T Rex and BSDE

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

By analyzing existing cross correlation between T Rex 2X Long and BSDE, you can compare the effects of market volatilities on T Rex and BSDE 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 T Rex with a short position of BSDE. Check out your portfolio center. Please also check ongoing floating volatility patterns of T Rex and BSDE.

Diversification Opportunities for T Rex and BSDE

0.0

Correlation Coefficient

T Rex  BSDE

Pay attention - limited upside

The 3 months correlation between NVDX and BSDE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding T Rex 2X Long and BSDE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BSDE and T Rex 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 T Rex 2X Long are associated (or correlated) with BSDE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BSDE has no effect on the direction of T Rex i.e., T Rex and BSDE go up and down completely randomly.

Pair Corralation between T Rex and BSDE

If you would invest (100.00) in BSDE on December 19, 2024 and sell it today you would earn a total of  100.00  from holding BSDE or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

T Rex 2X Long  vs.  BSDE

T Rex 2X

Risk-Adjusted Performance

Very Weak

Over the last 90 days T Rex 2X Long has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Etf's fundamental indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the ETF investors.

BSDE

Risk-Adjusted Performance

Very Weak

Over the last 90 days BSDE has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, BSDE is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with T Rex and BSDE

The main advantage of trading using opposite T Rex and BSDE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if T Rex position performs unexpectedly, BSDE 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 BSDE will offset losses from the drop in BSDE's long position.

The idea behind T Rex 2X Long and BSDE 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.