Correlation Between BSAE and IEMV
Can any of the company-specific risk be diversified away by investing in both BSAE and IEMV 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 BSAE and IEMV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BSAE and IEMV, you can compare the effects of market volatilities on BSAE and IEMV 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 BSAE with a short position of IEMV. Check out your portfolio center. Please also check ongoing floating volatility patterns of BSAE and IEMV.
Diversification Opportunities for BSAE and IEMV
Pay attention - limited upside
The 3 months correlation between BSAE and IEMV is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BSAE and IEMV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IEMV and BSAE 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 BSAE are associated (or correlated) with IEMV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IEMV has no effect on the direction of BSAE i.e., BSAE and IEMV go up and down completely randomly.
Pair Corralation between BSAE and IEMV
If you would invest 0.00 in IEMV on January 20, 2024 and sell it today you would earn a total of 0.00 from holding IEMV or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
BSAE vs. IEMV
Performance |
| Timeline |
| BSAE |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| IEMV |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
BSAE and IEMV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BSAE and IEMV
The main advantage of trading using opposite BSAE and IEMV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BSAE position performs unexpectedly, IEMV 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 IEMV will offset losses from the drop in IEMV's long position.| BSAE vs. SPDR SSGA Fixed | BSAE vs. SPDR Series Trust | BSAE vs. SSGA Active Trust | BSAE vs. SPDR DoubleLine Short |
| IEMV vs. SPDR SSGA Fixed | IEMV vs. SPDR Series Trust | IEMV vs. SSGA Active Trust | IEMV vs. SPDR DoubleLine Short |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Transaction History View history of all your transactions and understand their impact on performance |