Correlation Between Bonso Electronics and Fortive Corp
Can any of the company-specific risk be diversified away by investing in both Bonso Electronics and Fortive Corp 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 Fortive Corp 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 Fortive Corp, you can compare the effects of market volatilities on Bonso Electronics and Fortive Corp 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 Fortive Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bonso Electronics and Fortive Corp.
Diversification Opportunities for Bonso Electronics and Fortive Corp
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bonso and Fortive is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bonso Electronics Internationa and Fortive Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fortive Corp 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 Fortive Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fortive Corp has no effect on the direction of Bonso Electronics i.e., Bonso Electronics and Fortive Corp go up and down completely randomly.
Pair Corralation between Bonso Electronics and Fortive Corp
If you would invest (100.00) in Bonso Electronics International on January 11, 2025 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. Fortive Corp
Performance |
| Timeline |
| Bonso Electronics |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Fortive Corp |
Bonso Electronics and Fortive Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bonso Electronics and Fortive Corp
The main advantage of trading using opposite Bonso Electronics and Fortive Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bonso Electronics position performs unexpectedly, Fortive Corp 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 Fortive Corp will offset losses from the drop in Fortive Corp's long position.| Bonso Electronics vs. SaverOne 2014 Ltd | Bonso Electronics vs. Genasys | Bonso Electronics vs. Kraken Robotics | Bonso Electronics vs. Mesa Laboratories |
| Fortive Corp vs. Vishay Precision Group | Fortive Corp vs. Sensata Technologies Holding | Fortive Corp vs. Badger Meter | Fortive Corp vs. Trimble |
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 CEOs Directory module to screen CEOs from public companies around the world.
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