Correlation Between BingEx and Globavend Holdings

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

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

Diversification Opportunities for BingEx and Globavend Holdings

0.36

Correlation Coefficient

BingEx  Globavend Holdings

Weak diversification

The 3 months correlation between BingEx and Globavend is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding BingEx and Globavend Holdings Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Globavend Holdings and BingEx 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 BingEx are associated (or correlated) with Globavend Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Globavend Holdings has no effect on the direction of BingEx i.e., BingEx and Globavend Holdings go up and down completely randomly.

Pair Corralation between BingEx and Globavend Holdings

Considering the 90-day investment horizon BingEx is expected to under-perform the Globavend Holdings. In addition to that, BingEx is 1.23 times more volatile than Globavend Holdings Limited. It trades about -0.16 of its total potential returns per unit of risk. Globavend Holdings Limited is currently generating about 0.01 per unit of volatility. If you would invest  72.00  in Globavend Holdings Limited on September 13, 2024 and sell it today you would lose (3.00) from holding Globavend Holdings Limited or give up 4.17% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	77.78%
Values	Daily Returns

BingEx  vs.  Globavend Holdings Limited

BingEx

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days BingEx has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's essential indicators remain fairly 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.

Globavend Holdings

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Globavend Holdings Limited are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong basic indicators, Globavend Holdings is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with BingEx and Globavend Holdings

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

The idea behind BingEx and Globavend Holdings Limited 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.