Correlation Between BioHiTech Global and Select Energy
Can any of the company-specific risk be diversified away by investing in both BioHiTech Global and Select Energy 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 BioHiTech Global and Select Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BioHiTech Global and Select Energy Services, you can compare the effects of market volatilities on BioHiTech Global and Select Energy 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 BioHiTech Global with a short position of Select Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioHiTech Global and Select Energy.
Diversification Opportunities for BioHiTech Global and Select Energy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BioHiTech and Select is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BioHiTech Global and Select Energy Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Select Energy Services and BioHiTech 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 BioHiTech Global are associated (or correlated) with Select Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Select Energy Services has no effect on the direction of BioHiTech Global i.e., BioHiTech Global and Select Energy go up and down completely randomly.
Pair Corralation between BioHiTech Global and Select Energy
If you would invest 923.00 in Select Energy Services on January 25, 2024 and sell it today you would earn a total of 16.00 from holding Select Energy Services or generate 1.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
BioHiTech Global vs. Select Energy Services
Performance |
| Timeline |
| BioHiTech Global |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Select Energy Services |
BioHiTech Global and Select Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BioHiTech Global and Select Energy
The main advantage of trading using opposite BioHiTech Global and Select Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioHiTech Global position performs unexpectedly, Select Energy 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 Select Energy will offset losses from the drop in Select Energy's long position.| BioHiTech Global vs. Fortress Transp Infra | BioHiTech Global vs. Radcom | BioHiTech Global vs. U Haul Holding | BioHiTech Global vs. Air Lease |
| Select Energy vs. Orion Engineered Carbons | Select Energy vs. Element Solutions | Select Energy vs. Kronos Worldwide | Select Energy vs. FutureFuel Corp |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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