Correlation Between Bonny Worldwide and Logah Technology

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Can any of the company-specific risk be diversified away by investing in both Bonny Worldwide and Logah Technology 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 Logah Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bonny Worldwide and Logah Technology Corp, you can compare the effects of market volatilities on Bonny Worldwide and Logah Technology 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 Logah Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bonny Worldwide and Logah Technology.

Diversification Opportunities for Bonny Worldwide and Logah Technology

-0.72
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Bonny and Logah is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Bonny Worldwide and Logah Technology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Logah Technology Corp 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 Logah Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Logah Technology Corp has no effect on the direction of Bonny Worldwide i.e., Bonny Worldwide and Logah Technology go up and down completely randomly.

Pair Corralation between Bonny Worldwide and Logah Technology

Assuming the 90 days trading horizon Bonny Worldwide is expected to generate 0.59 times more return on investment than Logah Technology. However, Bonny Worldwide is 1.69 times less risky than Logah Technology. It trades about 0.11 of its potential returns per unit of risk. Logah Technology Corp is currently generating about -0.21 per unit of risk. If you would invest  26,100  in Bonny Worldwide on October 11, 2024 and sell it today you would earn a total of  3,900  from holding Bonny Worldwide or generate 14.94% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Bonny Worldwide  vs.  Logah Technology Corp

 Performance 
       Timeline  
Bonny Worldwide 

Risk-Adjusted Performance

8 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Bonny Worldwide are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Bonny Worldwide showed solid returns over the last few months and may actually be approaching a breakup point.
Logah Technology Corp 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Logah Technology Corp 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 February 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Bonny Worldwide and Logah Technology Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Bonny Worldwide and Logah Technology

The main advantage of trading using opposite Bonny Worldwide and Logah Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bonny Worldwide position performs unexpectedly, Logah Technology 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 Logah Technology will offset losses from the drop in Logah Technology's long position.
The idea behind Bonny Worldwide and Logah Technology Corp 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.

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