Correlation Between Brightcove and CooTek

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

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

Diversification Opportunities for Brightcove and CooTek

0.0

Correlation Coefficient

Brightcove  CooTek

Pay attention - limited upside

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

Pair Corralation between Brightcove and CooTek

If you would invest (100.00) in CooTek Inc on January 20, 2024 and sell it today you would earn a total of  100.00  from holding CooTek Inc 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

Brightcove  vs.  CooTek Inc

Brightcove

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Brightcove has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in May 2024. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

CooTek Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CooTek Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, CooTek is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Brightcove and CooTek

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

The idea behind Brightcove and CooTek 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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.