Correlation Between Berkeley Lights and Moncler SPA

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Can any of the company-specific risk be diversified away by investing in both Berkeley Lights and Moncler SPA 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 Berkeley Lights and Moncler SPA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Berkeley Lights and Moncler SPA ADR, you can compare the effects of market volatilities on Berkeley Lights and Moncler SPA 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 Berkeley Lights with a short position of Moncler SPA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Berkeley Lights and Moncler SPA.

Diversification Opportunities for Berkeley Lights and Moncler SPA

-0.31
  Correlation Coefficient

Very good diversification

The 3 months correlation between Berkeley and Moncler is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Berkeley Lights and Moncler SPA ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Moncler SPA ADR and Berkeley Lights 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 Berkeley Lights are associated (or correlated) with Moncler SPA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Moncler SPA ADR has no effect on the direction of Berkeley Lights i.e., Berkeley Lights and Moncler SPA go up and down completely randomly.

Pair Corralation between Berkeley Lights and Moncler SPA

Considering the 90-day investment horizon Berkeley Lights is expected to under-perform the Moncler SPA. In addition to that, Berkeley Lights is 1.9 times more volatile than Moncler SPA ADR. It trades about -0.1 of its total potential returns per unit of risk. Moncler SPA ADR is currently generating about 0.01 per unit of volatility. If you would invest  5,372  in Moncler SPA ADR on August 30, 2022 and sell it today you would lose (372.00)  from holding Moncler SPA ADR or give up 6.92% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Berkeley Lights  vs.  Moncler SPA ADR

 Performance (%) 
       Timeline  
Berkeley Lights 
Berkeley Performance
0 of 100
Over the last 90 days Berkeley Lights has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's essential indicators remain nearly stable which may send shares a bit higher in December 2022. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Berkeley Price Channel

Moncler SPA ADR 
Moncler Performance
6 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Moncler SPA ADR are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Moncler SPA showed solid returns over the last few months and may actually be approaching a breakup point.

Moncler Price Channel

Berkeley Lights and Moncler SPA Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Berkeley Lights and Moncler SPA

The main advantage of trading using opposite Berkeley Lights and Moncler SPA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Berkeley Lights position performs unexpectedly, Moncler SPA 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 Moncler SPA will offset losses from the drop in Moncler SPA's long position.
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The idea behind Berkeley Lights and Moncler SPA ADR 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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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.

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