Correlation Between Bonny Worldwide and Cheer Time
Can any of the company-specific risk be diversified away by investing in both Bonny Worldwide and Cheer Time 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 Bonny Worldwide and Cheer Time into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bonny Worldwide and Cheer Time Enterprise, you can compare the effects of market volatilities on Bonny Worldwide and Cheer Time 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 Bonny Worldwide with a short position of Cheer Time. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bonny Worldwide and Cheer Time.
Diversification Opportunities for Bonny Worldwide and Cheer Time
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bonny and Cheer is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Bonny Worldwide and Cheer Time Enterprise in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cheer Time Enterprise and Bonny Worldwide 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 Bonny Worldwide are associated (or correlated) with Cheer Time. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cheer Time Enterprise has no effect on the direction of Bonny Worldwide i.e., Bonny Worldwide and Cheer Time go up and down completely randomly.
Pair Corralation between Bonny Worldwide and Cheer Time
Assuming the 90 days trading horizon Bonny Worldwide is expected to under-perform the Cheer Time. In addition to that, Bonny Worldwide is 1.64 times more volatile than Cheer Time Enterprise. It trades about -0.11 of its total potential returns per unit of risk. Cheer Time Enterprise is currently generating about -0.1 per unit of volatility. If you would invest 1,840 in Cheer Time Enterprise on October 12, 2024 and sell it today you would lose (90.00) from holding Cheer Time Enterprise or give up 4.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bonny Worldwide vs. Cheer Time Enterprise
Performance |
| Timeline |
| Bonny Worldwide |
| Cheer Time Enterprise |
Bonny Worldwide and Cheer Time Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bonny Worldwide and Cheer Time
The main advantage of trading using opposite Bonny Worldwide and Cheer Time positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bonny Worldwide position performs unexpectedly, Cheer Time 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 Cheer Time will offset losses from the drop in Cheer Time's long position.| Bonny Worldwide vs. Paiho Shih Holdings | Bonny Worldwide vs. Thunder Tiger Corp | Bonny Worldwide vs. Feng Tay Enterprises | Bonny Worldwide vs. Sinyi Realty |
| Cheer Time vs. Nichidenbo Corp | Cheer Time vs. Logah Technology Corp | Cheer Time vs. Powertech Industrial Co | Cheer Time vs. HannStar Board 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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