Correlation Between BRFSBZ and Acm Research

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

By analyzing existing cross correlation between BRFSBZ 575 21 SEP 50 and Acm Research, you can compare the effects of market volatilities on BRFSBZ and Acm Research 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 BRFSBZ with a short position of Acm Research. Check out your portfolio center. Please also check ongoing floating volatility patterns of BRFSBZ and Acm Research.

Diversification Opportunities for BRFSBZ and Acm Research

-0.23

Correlation Coefficient

BRFSBZ  Acm Research

Very good diversification

The 3 months correlation between BRFSBZ and Acm is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding BRFSBZ 575 21 SEP 50 and Acm Research in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acm Research and BRFSBZ 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 BRFSBZ 575 21 SEP 50 are associated (or correlated) with Acm Research. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acm Research has no effect on the direction of BRFSBZ i.e., BRFSBZ and Acm Research go up and down completely randomly.

Pair Corralation between BRFSBZ and Acm Research

Assuming the 90 days trading horizon BRFSBZ 575 21 SEP 50 is expected to under-perform the Acm Research. But the bond apears to be less risky and, when comparing its historical volatility, BRFSBZ 575 21 SEP 50 is 1.39 times less risky than Acm Research. The bond trades about -0.24 of its potential returns per unit of risk. The Acm Research is currently generating about -0.15 of returns per unit of risk over similar time horizon. If you would invest  1,867  in Acm Research on September 13, 2024 and sell it today you would lose (307.00) from holding Acm Research or give up 16.44% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	19.05%
Values	Daily Returns

BRFSBZ 575 21 SEP 50  vs.  Acm Research

BRFSBZ 575 21

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days BRFSBZ 575 21 SEP 50 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Bond's basic 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 BRFSBZ 575 21 SEP 50 investors.

Acm Research

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Acm Research has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable primary indicators, Acm Research is not utilizing all of its potentials. The newest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with BRFSBZ and Acm Research

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

The idea behind BRFSBZ 575 21 SEP 50 and Acm Research 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.