Correlation Between BYND Cannasoft and Visium Technologies

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

By analyzing existing cross correlation between BYND Cannasoft Enterprises and Visium Technologies, you can compare the effects of market volatilities on BYND Cannasoft and Visium Technologies 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 BYND Cannasoft with a short position of Visium Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of BYND Cannasoft and Visium Technologies.

Diversification Opportunities for BYND Cannasoft and Visium Technologies

0.11

Correlation Coefficient

BYND Cannasoft  Visium Technologies

Average diversification

The 3 months correlation between BYND and Visium is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding BYND Cannasoft Enterprises and Visium Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Visium Technologies and BYND Cannasoft 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 BYND Cannasoft Enterprises are associated (or correlated) with Visium Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Visium Technologies has no effect on the direction of BYND Cannasoft i.e., BYND Cannasoft and Visium Technologies go up and down completely randomly.

Pair Corralation between BYND Cannasoft and Visium Technologies

Given the investment horizon of 90 days BYND Cannasoft Enterprises is expected to under-perform the Visium Technologies. But the stock apears to be less risky and, when comparing its historical volatility, BYND Cannasoft Enterprises is 10.09 times less risky than Visium Technologies. The stock trades about 0.0 of its potential returns per unit of risk. The Visium Technologies is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  0.28  in Visium Technologies on September 18, 2024 and sell it today you would earn a total of  0.02  from holding Visium Technologies or generate 7.14% return on investment over 90 days.

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

BYND Cannasoft Enterprises  vs.  Visium Technologies

BYND Cannasoft Enter

Risk-Adjusted Performance

0 of 100

Very Weak

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

Visium Technologies

Risk-Adjusted Performance

5 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Visium Technologies are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Visium Technologies displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with BYND Cannasoft and Visium Technologies

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

The idea behind BYND Cannasoft Enterprises and Visium Technologies 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.