Correlation Between B Yair and Terminal X

Can any of the company-specific risk be diversified away by investing in both B Yair and Terminal X 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 B Yair and Terminal X into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between B Yair Building and Terminal X Online, you can compare the effects of market volatilities on B Yair and Terminal X 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 B Yair with a short position of Terminal X. Check out your portfolio center. Please also check ongoing floating volatility patterns of B Yair and Terminal X.

Diversification Opportunities for B Yair and Terminal X

0.42

Correlation Coefficient

B Yair  Terminal X

Very weak diversification

The 3 months correlation between BYAR and Terminal is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding B Yair Building and Terminal X Online in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Terminal X Online and B Yair 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 B Yair Building are associated (or correlated) with Terminal X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Terminal X Online has no effect on the direction of B Yair i.e., B Yair and Terminal X go up and down completely randomly.

Pair Corralation between B Yair and Terminal X

Assuming the 90 days trading horizon B Yair Building is expected to generate 2.76 times more return on investment than Terminal X. However, B Yair is 2.76 times more volatile than Terminal X Online. It trades about 0.24 of its potential returns per unit of risk. Terminal X Online is currently generating about 0.57 per unit of risk. If you would invest  88,250  in B Yair Building on September 26, 2024 and sell it today you would earn a total of  55,750  from holding B Yair Building or generate 63.17% return on investment over 90 days.

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

B Yair Building  vs.  Terminal X Online

B Yair Building

Risk-Adjusted Performance

18 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in B Yair Building are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, B Yair sustained solid returns over the last few months and may actually be approaching a breakup point.

Terminal X Online

Risk-Adjusted Performance

44 of 100

Excellent

Compared to the overall equity markets, risk-adjusted returns on investments in Terminal X Online are ranked lower than 44 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Terminal X sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with B Yair and Terminal X

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

The idea behind B Yair Building and Terminal X Online 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.