Correlation Between Workday and Beamr Imaging

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

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

Diversification Opportunities for Workday and Beamr Imaging

0.09

Correlation Coefficient

Workday  Beamr Imaging

Significant diversification

The 3 months correlation between Workday and Beamr is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Workday and Beamr Imaging Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beamr Imaging and Workday 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 Workday are associated (or correlated) with Beamr Imaging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beamr Imaging has no effect on the direction of Workday i.e., Workday and Beamr Imaging go up and down completely randomly.

Pair Corralation between Workday and Beamr Imaging

Given the investment horizon of 90 days Workday is expected to generate 0.38 times more return on investment than Beamr Imaging. However, Workday is 2.6 times less risky than Beamr Imaging. It trades about -0.06 of its potential returns per unit of risk. Beamr Imaging Ltd is currently generating about -0.25 per unit of risk. If you would invest  26,200  in Workday on December 28, 2024 and sell it today you would lose (2,351) from holding Workday or give up 8.97% of portfolio value over 90 days.

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

Workday  vs.  Beamr Imaging Ltd

Workday

Risk-Adjusted Performance

Very Weak

Over the last 90 days Workday has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Beamr Imaging

Risk-Adjusted Performance

Very Weak

Over the last 90 days Beamr Imaging Ltd has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's primary indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Workday and Beamr Imaging

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

The idea behind Workday and Beamr Imaging Ltd 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.