Correlation Between Bonso Electronics and Focus Universal
Can any of the company-specific risk be diversified away by investing in both Bonso Electronics and Focus Universal 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 Bonso Electronics and Focus Universal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bonso Electronics International and Focus Universal, you can compare the effects of market volatilities on Bonso Electronics and Focus Universal 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 Bonso Electronics with a short position of Focus Universal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bonso Electronics and Focus Universal.
Diversification Opportunities for Bonso Electronics and Focus Universal
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bonso and Focus is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bonso Electronics Internationa and Focus Universal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Focus Universal and Bonso Electronics 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 Bonso Electronics International are associated (or correlated) with Focus Universal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Focus Universal has no effect on the direction of Bonso Electronics i.e., Bonso Electronics and Focus Universal go up and down completely randomly.
Pair Corralation between Bonso Electronics and Focus Universal
If you would invest (100.00) in Bonso Electronics International on November 8, 2024 and sell it today you would earn a total of 100.00 from holding Bonso Electronics International or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Bonso Electronics Internationa vs. Focus Universal
Performance |
| Timeline |
| Bonso Electronics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Focus Universal |
Bonso Electronics and Focus Universal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bonso Electronics and Focus Universal
The main advantage of trading using opposite Bonso Electronics and Focus Universal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bonso Electronics position performs unexpectedly, Focus Universal 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 Focus Universal will offset losses from the drop in Focus Universal's long position.| Bonso Electronics vs. SaverOne 2014 Ltd | Bonso Electronics vs. Genasys | Bonso Electronics vs. Kraken Robotics | Bonso Electronics vs. Mesa Laboratories |
| Focus Universal vs. ESCO Technologies | Focus Universal vs. Genasys | Focus Universal vs. Know Labs | Focus Universal vs. Sono Tek 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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