Correlation Between BlueScope Steel and Binovi Technologies

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

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

Diversification Opportunities for BlueScope Steel and Binovi Technologies

0.0

Correlation Coefficient

BlueScope Steel  Binovi Technologies

Pay attention - limited upside

The 3 months correlation between BlueScope and Binovi is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BlueScope Steel Limited and Binovi Technologies Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Binovi Technologies Corp and BlueScope Steel 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 BlueScope Steel Limited are associated (or correlated) with Binovi Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Binovi Technologies Corp has no effect on the direction of BlueScope Steel i.e., BlueScope Steel and Binovi Technologies go up and down completely randomly.

Pair Corralation between BlueScope Steel and Binovi Technologies

If you would invest  0.00  in Binovi Technologies Corp on February 5, 2024 and sell it today you would earn a total of  0.00  from holding Binovi Technologies Corp or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	4.76%
Values	Daily Returns

BlueScope Steel Limited  vs.  Binovi Technologies Corp

BlueScope Steel

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days BlueScope Steel Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, BlueScope Steel is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Binovi Technologies Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Binovi Technologies Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental indicators, Binovi Technologies is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with BlueScope Steel and Binovi Technologies

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

The idea behind BlueScope Steel Limited and Binovi Technologies Corp 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.