Correlation Between BigBen Interactive and Body One

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

By analyzing existing cross correlation between BigBen Interactive and Body One SA, you can compare the effects of market volatilities on BigBen Interactive and Body One 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 BigBen Interactive with a short position of Body One. Check out your portfolio center. Please also check ongoing floating volatility patterns of BigBen Interactive and Body One.

Diversification Opportunities for BigBen Interactive and Body One

0.0

Correlation Coefficient

BigBen Interactive  Body One

Pay attention - limited upside

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

Pair Corralation between BigBen Interactive and Body One

If you would invest  0.00  in Body One SA on October 1, 2024 and sell it today you would earn a total of  0.00  from holding Body One SA or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.59%
Values	Daily Returns

BigBen Interactive  vs.  Body One SA

BigBen Interactive

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days BigBen Interactive has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's technical and fundamental indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Body One SA

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Body One SA are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Body One reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with BigBen Interactive and Body One

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

The idea behind BigBen Interactive and Body One SA 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.