Correlation Between Bon Natural and Integral
Can any of the company-specific risk be diversified away by investing in both Bon Natural and Integral 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 Bon Natural and Integral into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bon Natural Life and Integral Ad Science, you can compare the effects of market volatilities on Bon Natural and Integral 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 Bon Natural with a short position of Integral. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bon Natural and Integral.
Diversification Opportunities for Bon Natural and Integral
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bon and Integral is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Bon Natural Life and Integral Ad Science in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integral Ad Science and Bon Natural 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 Bon Natural Life are associated (or correlated) with Integral. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integral Ad Science has no effect on the direction of Bon Natural i.e., Bon Natural and Integral go up and down completely randomly.
Pair Corralation between Bon Natural and Integral
Considering the 90-day investment horizon Bon Natural Life is expected to generate 0.95 times more return on investment than Integral. However, Bon Natural Life is 1.05 times less risky than Integral. It trades about 0.11 of its potential returns per unit of risk. Integral Ad Science is currently generating about 0.09 per unit of risk. If you would invest 145.00 in Bon Natural Life on August 24, 2024 and sell it today you would earn a total of 13.00 from holding Bon Natural Life or generate 8.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bon Natural Life vs. Integral Ad Science
Performance |
| Timeline |
| Bon Natural Life |
| Integral Ad Science |
Bon Natural and Integral Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bon Natural and Integral
The main advantage of trading using opposite Bon Natural and Integral positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bon Natural position performs unexpectedly, Integral 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 Integral will offset losses from the drop in Integral's long position.| Bon Natural vs. Blue Star Foods | Bon Natural vs. Grand Havana | Bon Natural vs. Real Good Food | 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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