Correlation Between Exactus and Babcock Wilcox

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

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

Diversification Opportunities for Exactus and Babcock Wilcox

0.0

Correlation Coefficient

Exactus  Babcock Wilcox

Pay attention - limited upside

The 3 months correlation between Exactus and Babcock is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Exactus 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 Exactus 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 Exactus 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 Exactus i.e., Exactus and Babcock Wilcox go up and down completely randomly.

Pair Corralation between Exactus and Babcock Wilcox

If you would invest  89.00  in Babcock Wilcox Enterprises on January 19, 2024 and sell it today you would earn a total of  12.00  from holding Babcock Wilcox Enterprises or generate 13.48% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Exactus  vs.  Babcock Wilcox Enterprises

Exactus

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Exactus has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong fundamental indicators, Exactus is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Babcock Wilcox Enter

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Babcock Wilcox Enterprises are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Babcock Wilcox may actually be approaching a critical reversion point that can send shares even higher in May 2024.

Pair Trading with Exactus and Babcock Wilcox

The main advantage of trading using opposite Exactus and Babcock Wilcox positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exactus 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.

The idea behind Exactus and Babcock Wilcox Enterprises 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.

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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.