Correlation Between Blonder Tongue and BeWhere Holdings

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

By analyzing existing cross correlation between Blonder Tongue Laboratories and BeWhere Holdings, you can compare the effects of market volatilities on Blonder Tongue and BeWhere Holdings 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 Blonder Tongue with a short position of BeWhere Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blonder Tongue and BeWhere Holdings.

Diversification Opportunities for Blonder Tongue and BeWhere Holdings

-0.24

Correlation Coefficient

Blonder Tongue  BeWhere Holdings

Very good diversification

The 3 months correlation between Blonder and BeWhere is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Blonder Tongue Laboratories and BeWhere Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BeWhere Holdings and Blonder Tongue 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 Blonder Tongue Laboratories are associated (or correlated) with BeWhere Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BeWhere Holdings has no effect on the direction of Blonder Tongue i.e., Blonder Tongue and BeWhere Holdings go up and down completely randomly.

Pair Corralation between Blonder Tongue and BeWhere Holdings

If you would invest  52.00  in BeWhere Holdings on September 3, 2024 and sell it today you would lose (1.00) from holding BeWhere Holdings or give up 1.92% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

Blonder Tongue Laboratories  vs.  BeWhere Holdings

Blonder Tongue Labor

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Blonder Tongue Laboratories has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, Blonder Tongue is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

BeWhere Holdings

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in BeWhere Holdings are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable technical and fundamental indicators, BeWhere Holdings is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Blonder Tongue and BeWhere Holdings

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

The idea behind Blonder Tongue Laboratories and BeWhere Holdings 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.