Correlation Between Bon Natural and Wing Yip
Can any of the company-specific risk be diversified away by investing in both Bon Natural and Wing Yip 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 Wing Yip 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 Wing Yip Food, you can compare the effects of market volatilities on Bon Natural and Wing Yip 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 Wing Yip. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bon Natural and Wing Yip.
Diversification Opportunities for Bon Natural and Wing Yip
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bon and Wing is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Bon Natural Life and Wing Yip Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wing Yip Food 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 Wing Yip. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wing Yip Food has no effect on the direction of Bon Natural i.e., Bon Natural and Wing Yip go up and down completely randomly.
Pair Corralation between Bon Natural and Wing Yip
Considering the 90-day investment horizon Bon Natural is expected to generate 7.41 times less return on investment than Wing Yip. But when comparing it to its historical volatility, Bon Natural Life is 2.29 times less risky than Wing Yip. It trades about 0.02 of its potential returns per unit of risk. Wing Yip Food is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 495.00 in Wing Yip Food on October 22, 2024 and sell it today you would earn a total of 25.00 from holding Wing Yip Food or generate 5.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Bon Natural Life vs. Wing Yip Food
Performance |
| Timeline |
| Bon Natural Life |
| Wing Yip Food |
Bon Natural and Wing Yip Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bon Natural and Wing Yip
The main advantage of trading using opposite Bon Natural and Wing Yip positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bon Natural position performs unexpectedly, Wing Yip 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 Wing Yip will offset losses from the drop in Wing Yip's long position.| Bon Natural vs. Grand Havana | Bon Natural vs. Real Good Food | Bon Natural vs. Central Garden Pet | Bon Natural vs. Natures Sunshine Products |
| Wing Yip vs. Kellanova | Wing Yip vs. Lamb Weston Holdings | Wing Yip vs. Borealis Foods | Wing Yip vs. Westrock Coffee |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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