Correlation Between Steel Connect and Beyond Commerce

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

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

Diversification Opportunities for Steel Connect and Beyond Commerce

0.0

Correlation Coefficient

Steel Connect  Beyond Commerce

Pay attention - limited upside

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

Pair Corralation between Steel Connect and Beyond Commerce

If you would invest  0.02  in Beyond Commerce on December 28, 2024 and sell it today you would lose (0.01) from holding Beyond Commerce or give up 50.0% of portfolio value over 90 days.

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

Steel Connect  vs.  Beyond Commerce

Steel Connect

Risk-Adjusted Performance

Very Weak

Over the last 90 days Steel Connect has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy fundamental indicators, Steel Connect is not utilizing all of its potentials. The newest stock price disarray, may contribute to short-term losses for the investors.

Beyond Commerce

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Beyond Commerce are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating basic indicators, Beyond Commerce exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Steel Connect and Beyond Commerce

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

The idea behind Steel Connect and Beyond Commerce 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.