Correlation Between Beamr Imaging and MondayCom

Can any of the company-specific risk be diversified away by investing in both Beamr Imaging and MondayCom 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 MondayCom 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 MondayCom, you can compare the effects of market volatilities on Beamr Imaging and MondayCom 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 MondayCom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beamr Imaging and MondayCom.

Diversification Opportunities for Beamr Imaging and MondayCom

-0.14

Correlation Coefficient

Beamr Imaging  MondayCom

Good diversification

The 3 months correlation between Beamr and MondayCom is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Beamr Imaging Ltd and MondayCom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MondayCom 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 MondayCom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MondayCom has no effect on the direction of Beamr Imaging i.e., Beamr Imaging and MondayCom go up and down completely randomly.

Pair Corralation between Beamr Imaging and MondayCom

Considering the 90-day investment horizon Beamr Imaging Ltd is expected to under-perform the MondayCom. In addition to that, Beamr Imaging is 1.62 times more volatile than MondayCom. It trades about -0.03 of its total potential returns per unit of risk. MondayCom is currently generating about 0.08 per unit of volatility. If you would invest  22,324  in MondayCom on September 5, 2024 and sell it today you would earn a total of  5,756  from holding MondayCom or generate 25.78% return on investment over 90 days.

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

Beamr Imaging Ltd  vs.  MondayCom

Beamr Imaging

Risk-Adjusted Performance

0 of 100

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 relatively invariable primary indicators, Beamr Imaging is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

MondayCom

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in MondayCom are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile fundamental indicators, MondayCom showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Beamr Imaging and MondayCom

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

The idea behind Beamr Imaging Ltd and MondayCom 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.