Correlation Between Augwind Energy and Bonus Biogroup
Can any of the company-specific risk be diversified away by investing in both Augwind Energy and Bonus Biogroup 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 Augwind Energy and Bonus Biogroup into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Augwind Energy Tech and Bonus Biogroup, you can compare the effects of market volatilities on Augwind Energy and Bonus Biogroup 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 Augwind Energy with a short position of Bonus Biogroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of Augwind Energy and Bonus Biogroup.
Diversification Opportunities for Augwind Energy and Bonus Biogroup
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Augwind and Bonus is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Augwind Energy Tech and Bonus Biogroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bonus Biogroup and Augwind Energy 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 Augwind Energy Tech are associated (or correlated) with Bonus Biogroup. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bonus Biogroup has no effect on the direction of Augwind Energy i.e., Augwind Energy and Bonus Biogroup go up and down completely randomly.
Pair Corralation between Augwind Energy and Bonus Biogroup
Assuming the 90 days trading horizon Augwind Energy Tech is expected to generate 1.61 times more return on investment than Bonus Biogroup. However, Augwind Energy is 1.61 times more volatile than Bonus Biogroup. It trades about 0.03 of its potential returns per unit of risk. Bonus Biogroup is currently generating about 0.03 per unit of risk. If you would invest 40,060 in Augwind Energy Tech on December 1, 2024 and sell it today you would earn a total of 3,270 from holding Augwind Energy Tech or generate 8.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Augwind Energy Tech vs. Bonus Biogroup
Performance |
| Timeline |
| Augwind Energy Tech |
| Bonus Biogroup |
Augwind Energy and Bonus Biogroup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Augwind Energy and Bonus Biogroup
The main advantage of trading using opposite Augwind Energy and Bonus Biogroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Augwind Energy position performs unexpectedly, Bonus Biogroup 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 Bonus Biogroup will offset losses from the drop in Bonus Biogroup's long position.| Augwind Energy vs. Insuline Medical | Augwind Energy vs. Terminal X Online | Augwind Energy vs. Retailors | Augwind Energy vs. Scope Metals Group |
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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 the Bonds Directory module to find actively traded corporate debentures issued by US companies.
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