Correlation Between Bonny Worldwide and O TA
Can any of the company-specific risk be diversified away by investing in both Bonny Worldwide and O TA 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 O TA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bonny Worldwide and O TA Precision Industry, you can compare the effects of market volatilities on Bonny Worldwide and O TA 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 O TA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bonny Worldwide and O TA.
Diversification Opportunities for Bonny Worldwide and O TA
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bonny and 8924 is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Bonny Worldwide and O TA Precision Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on O TA Precision 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 O TA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of O TA Precision has no effect on the direction of Bonny Worldwide i.e., Bonny Worldwide and O TA go up and down completely randomly.
Pair Corralation between Bonny Worldwide and O TA
Assuming the 90 days trading horizon Bonny Worldwide is expected to generate 5.27 times more return on investment than O TA. However, Bonny Worldwide is 5.27 times more volatile than O TA Precision Industry. It trades about -0.01 of its potential returns per unit of risk. O TA Precision Industry is currently generating about -0.14 per unit of risk. If you would invest 27,750 in Bonny Worldwide on August 25, 2024 and sell it today you would lose (900.00) from holding Bonny Worldwide or give up 3.24% 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. O TA Precision Industry
Performance |
| Timeline |
| Bonny Worldwide |
| O TA Precision |
Bonny Worldwide and O TA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bonny Worldwide and O TA
The main advantage of trading using opposite Bonny Worldwide and O TA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bonny Worldwide position performs unexpectedly, O TA 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 O TA will offset losses from the drop in O TA's long position.| Bonny Worldwide vs. Giant Manufacturing Co | Bonny Worldwide vs. Johnson Health Tech | Bonny Worldwide vs. Sports Gear Co | Bonny Worldwide vs. Power Wind Health |
| O TA vs. Advanced International Multitech | O TA vs. Dynamic Precision Industry | O TA vs. Greatek Electronics | O TA vs. Qisda 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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