Correlation Between Daily Journal and Beamr Imaging

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

By analyzing existing cross correlation between Daily Journal Corp and Beamr Imaging Ltd, you can compare the effects of market volatilities on Daily Journal and Beamr Imaging 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 Daily Journal with a short position of Beamr Imaging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daily Journal and Beamr Imaging.

Diversification Opportunities for Daily Journal and Beamr Imaging

0.84

Correlation Coefficient

Daily Journal  Beamr Imaging

Very poor diversification

The 3 months correlation between Daily and Beamr is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Daily Journal Corp and Beamr Imaging Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beamr Imaging and Daily Journal 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 Daily Journal Corp are associated (or correlated) with Beamr Imaging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beamr Imaging has no effect on the direction of Daily Journal i.e., Daily Journal and Beamr Imaging go up and down completely randomly.

Pair Corralation between Daily Journal and Beamr Imaging

Given the investment horizon of 90 days Daily Journal Corp is expected to generate 0.57 times more return on investment than Beamr Imaging. However, Daily Journal Corp is 1.76 times less risky than Beamr Imaging. It trades about -0.13 of its potential returns per unit of risk. Beamr Imaging Ltd is currently generating about -0.17 per unit of risk. If you would invest  51,861  in Daily Journal Corp on January 10, 2025 and sell it today you would lose (11,705) from holding Daily Journal Corp or give up 22.57% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

Daily Journal Corp  vs.  Beamr Imaging Ltd

Daily Journal Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Daily Journal Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's fundamental indicators remain very healthy which may send shares a bit higher in May 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Beamr Imaging

Risk-Adjusted Performance

Very Weak

Over the last 90 days Beamr Imaging Ltd has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's primary indicators remain relatively invariable which may send shares a bit higher in May 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Daily Journal and Beamr Imaging

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

The idea behind Daily Journal Corp and Beamr Imaging Ltd 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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.