Correlation Between BSR Real and Advent Wireless

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

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

Diversification Opportunities for BSR Real and Advent Wireless

-0.11

Correlation Coefficient

BSR Real  Advent Wireless

Good diversification

The 3 months correlation between BSR and Advent is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding BSR Real Estate and Advent Wireless in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advent Wireless and BSR Real 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 BSR Real Estate are associated (or correlated) with Advent Wireless. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advent Wireless has no effect on the direction of BSR Real i.e., BSR Real and Advent Wireless go up and down completely randomly.

Pair Corralation between BSR Real and Advent Wireless

Assuming the 90 days trading horizon BSR Real Estate is expected to generate 0.49 times more return on investment than Advent Wireless. However, BSR Real Estate is 2.02 times less risky than Advent Wireless. It trades about 0.1 of its potential returns per unit of risk. Advent Wireless is currently generating about -0.07 per unit of risk. If you would invest  1,204  in BSR Real Estate on April 23, 2025 and sell it today you would earn a total of  103.00  from holding BSR Real Estate or generate 8.55% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

BSR Real Estate  vs.  Advent Wireless

BSR Real Estate

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in BSR Real Estate are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, BSR Real may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Advent Wireless

Risk-Adjusted Performance

Very Weak

Over the last 90 days Advent Wireless has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Pair Trading with BSR Real and Advent Wireless

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

The idea behind BSR Real Estate and Advent Wireless 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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.