Correlation Between Beamr Imaging and Amesite Operating

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

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

Diversification Opportunities for Beamr Imaging and Amesite Operating

0.29

Correlation Coefficient

Beamr Imaging  Amesite Operating

Modest diversification

The 3 months correlation between Beamr and Amesite is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Beamr Imaging Ltd and Amesite Operating Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amesite Operating and Beamr Imaging 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 Beamr Imaging Ltd are associated (or correlated) with Amesite Operating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amesite Operating has no effect on the direction of Beamr Imaging i.e., Beamr Imaging and Amesite Operating go up and down completely randomly.

Pair Corralation between Beamr Imaging and Amesite Operating

Considering the 90-day investment horizon Beamr Imaging is expected to generate 6.38 times less return on investment than Amesite Operating. But when comparing it to its historical volatility, Beamr Imaging Ltd is 1.03 times less risky than Amesite Operating. It trades about 0.03 of its potential returns per unit of risk. Amesite Operating Co is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest  246.00  in Amesite Operating Co on September 15, 2024 and sell it today you would earn a total of  146.00  from holding Amesite Operating Co or generate 59.35% return on investment over 90 days.

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

Beamr Imaging Ltd  vs.  Amesite Operating Co

Beamr Imaging

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Beamr Imaging Ltd are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Even with relatively abnormal primary indicators, Beamr Imaging may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Amesite Operating

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Amesite Operating Co are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Amesite Operating unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Beamr Imaging and Amesite Operating

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

The idea behind Beamr Imaging Ltd and Amesite Operating Co 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.