Correlation Between Beam Global and Analog Devices

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Can any of the company-specific risk be diversified away by investing in both Beam Global and Analog Devices 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 Beam Global and Analog Devices into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Beam Global and Analog Devices, you can compare the effects of market volatilities on Beam Global and Analog Devices 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 Beam Global with a short position of Analog Devices. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beam Global and Analog Devices.

Diversification Opportunities for Beam Global and Analog Devices

0.0
  Correlation Coefficient

Pay attention - limited upside

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

Pair Corralation between Beam Global and Analog Devices

If you would invest  19,662  in Analog Devices on January 31, 2024 and sell it today you would earn a total of  728.00  from holding Analog Devices or generate 3.7% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Beam Global  vs.  Analog Devices

 Performance 
       Timeline  
Beam Global 

Risk-Adjusted Performance

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Very Weak
Over the last 90 days Beam Global has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Beam Global is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.
Analog Devices 

Risk-Adjusted Performance

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Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in Analog Devices are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite fairly unfluctuating fundamental indicators, Analog Devices may actually be approaching a critical reversion point that can send shares even higher in May 2024.

Beam Global and Analog Devices Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Beam Global and Analog Devices

The main advantage of trading using opposite Beam Global and Analog Devices positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beam Global position performs unexpectedly, Analog Devices 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 Analog Devices will offset losses from the drop in Analog Devices' long position.
The idea behind Beam Global and Analog Devices 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.
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.

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