Correlation Between Team Internet and Beeks Trading

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

By analyzing existing cross correlation between Team Internet Group and Beeks Trading, you can compare the effects of market volatilities on Team Internet and Beeks Trading 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 Team Internet with a short position of Beeks Trading. Check out your portfolio center. Please also check ongoing floating volatility patterns of Team Internet and Beeks Trading.

Diversification Opportunities for Team Internet and Beeks Trading

-0.46

Correlation Coefficient

Team Internet  Beeks Trading

Very good diversification

The 3 months correlation between Team and Beeks is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Team Internet Group and Beeks Trading in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beeks Trading and Team Internet 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 Team Internet Group are associated (or correlated) with Beeks Trading. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beeks Trading has no effect on the direction of Team Internet i.e., Team Internet and Beeks Trading go up and down completely randomly.

Pair Corralation between Team Internet and Beeks Trading

Assuming the 90 days trading horizon Team Internet Group is expected to under-perform the Beeks Trading. But the stock apears to be less risky and, when comparing its historical volatility, Team Internet Group is 1.17 times less risky than Beeks Trading. The stock trades about -0.03 of its potential returns per unit of risk. The Beeks Trading is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  13,600  in Beeks Trading on September 20, 2024 and sell it today you would earn a total of  14,900  from holding Beeks Trading or generate 109.56% return on investment over 90 days.

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

Team Internet Group  vs.  Beeks Trading

Team Internet Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Team Internet Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's technical and fundamental indicators remain rather sound which may send shares a bit higher in January 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Beeks Trading

Risk-Adjusted Performance

6 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Beeks Trading are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical and fundamental indicators, Beeks Trading exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Team Internet and Beeks Trading

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

The idea behind Team Internet Group and Beeks Trading 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.