Correlation Between B Communications and Spotlight Homes

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

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

Diversification Opportunities for B Communications and Spotlight Homes

0.0

Correlation Coefficient

B Communications  Spotlight Homes

Pay attention - limited upside

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

Pair Corralation between B Communications and Spotlight Homes

If you would invest  669.00  in B Communications on September 7, 2025 and sell it today you would earn a total of  66.00  from holding B Communications or generate 9.87% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

B Communications  vs.  Spotlight Homes

B Communications

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in B Communications are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile primary indicators, B Communications may actually be approaching a critical reversion point that can send shares even higher in January 2026.

Spotlight Homes

Risk-Adjusted Performance

Weakest

Over the last 90 days Spotlight Homes has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical indicators, Spotlight Homes is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with B Communications and Spotlight Homes

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

The idea behind B Communications and Spotlight Homes 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 Commodity Directory module to find actively traded commodities issued by global exchanges.