Correlation Between Bm Technologies and EPlus

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

By analyzing existing cross correlation between Bm Technologies and ePlus inc, you can compare the effects of market volatilities on Bm Technologies and EPlus 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 Bm Technologies with a short position of EPlus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bm Technologies and EPlus.

Diversification Opportunities for Bm Technologies and EPlus

0.01

Correlation Coefficient

Bm Technologies  EPlus

Significant diversification

The 3 months correlation between BMTX and EPlus is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Bm Technologies and ePlus inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ePlus inc and Bm Technologies 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 Bm Technologies are associated (or correlated) with EPlus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ePlus inc has no effect on the direction of Bm Technologies i.e., Bm Technologies and EPlus go up and down completely randomly.

Pair Corralation between Bm Technologies and EPlus

If you would invest  6,289  in ePlus inc on May 7, 2025 and sell it today you would earn a total of  142.00  from holding ePlus inc or generate 2.26% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	1.64%
Values	Daily Returns

Bm Technologies  vs.  ePlus inc

Bm Technologies

Risk-Adjusted Performance

Very Weak

Over the last 90 days Bm Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Bm Technologies is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

ePlus inc

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in ePlus inc are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, EPlus is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Bm Technologies and EPlus

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

The idea behind Bm Technologies and ePlus inc 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.