Correlation Between Beyond Oil and Bon Natural
Can any of the company-specific risk be diversified away by investing in both Beyond Oil and Bon Natural 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 Beyond Oil and Bon Natural into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Beyond Oil and Bon Natural Life, you can compare the effects of market volatilities on Beyond Oil and Bon Natural 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 Beyond Oil with a short position of Bon Natural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beyond Oil and Bon Natural.
Diversification Opportunities for Beyond Oil and Bon Natural
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Beyond and Bon is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Beyond Oil and Bon Natural Life in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bon Natural Life and Beyond Oil 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 Beyond Oil are associated (or correlated) with Bon Natural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bon Natural Life has no effect on the direction of Beyond Oil i.e., Beyond Oil and Bon Natural go up and down completely randomly.
Pair Corralation between Beyond Oil and Bon Natural
Assuming the 90 days horizon Beyond Oil is expected to generate 0.42 times more return on investment than Bon Natural. However, Beyond Oil is 2.4 times less risky than Bon Natural. It trades about -0.03 of its potential returns per unit of risk. Bon Natural Life is currently generating about -0.66 per unit of risk. If you would invest 289.00 in Beyond Oil on January 13, 2025 and sell it today you would lose (28.00) from holding Beyond Oil or give up 9.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beyond Oil vs. Bon Natural Life
Performance |
| Timeline |
| Beyond Oil |
| Bon Natural Life |
Beyond Oil and Bon Natural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beyond Oil and Bon Natural
The main advantage of trading using opposite Beyond Oil and Bon Natural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beyond Oil position performs unexpectedly, Bon Natural 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 Bon Natural will offset losses from the drop in Bon Natural's long position.| Beyond Oil vs. Marfrig Global Foods | Beyond Oil vs. Phenixfin | Beyond Oil vs. The Bank of | Beyond Oil vs. Waste Management |
| Bon Natural vs. Grand Havana | Bon Natural vs. Central Garden Pet | Bon Natural vs. Natures Sunshine Products | Bon Natural vs. Central Garden Pet |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |