Correlation Between Ault Global and Babcock Wilcox
Can any of the company-specific risk be diversified away by investing in both Ault Global and Babcock Wilcox 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 Ault Global and Babcock Wilcox into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ault Global Holdings and Babcock Wilcox Enterprises, you can compare the effects of market volatilities on Ault Global and Babcock Wilcox 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 Ault Global with a short position of Babcock Wilcox. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ault Global and Babcock Wilcox.
Diversification Opportunities for Ault Global and Babcock Wilcox
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ault and Babcock is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ault Global Holdings and Babcock Wilcox Enterprises in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Babcock Wilcox Enter and Ault 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 Ault Global Holdings are associated (or correlated) with Babcock Wilcox. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Babcock Wilcox Enter has no effect on the direction of Ault Global i.e., Ault Global and Babcock Wilcox go up and down completely randomly.
Pair Corralation between Ault Global and Babcock Wilcox
If you would invest (100.00) in Ault Global Holdings on January 25, 2024 and sell it today you would earn a total of 100.00 from holding Ault Global Holdings or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Ault Global Holdings vs. Babcock Wilcox Enterprises
Performance |
| Timeline |
| Ault Global Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Babcock Wilcox Enter |
Ault Global and Babcock Wilcox Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ault Global and Babcock Wilcox
The main advantage of trading using opposite Ault Global and Babcock Wilcox positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ault Global position performs unexpectedly, Babcock Wilcox 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 Babcock Wilcox will offset losses from the drop in Babcock Wilcox's long position.| Ault Global vs. Minerals Technologies | Ault Global vs. Transphorm Technology | Ault Global vs. The Cheesecake Factory | Ault Global vs. Texas Roadhouse |
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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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