Correlation Between Bonesupport Holding and JonDeTech Sensors
Can any of the company-specific risk be diversified away by investing in both Bonesupport Holding and JonDeTech Sensors 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 Bonesupport Holding and JonDeTech Sensors into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bonesupport Holding AB and JonDeTech Sensors, you can compare the effects of market volatilities on Bonesupport Holding and JonDeTech Sensors 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 Bonesupport Holding with a short position of JonDeTech Sensors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bonesupport Holding and JonDeTech Sensors.
Diversification Opportunities for Bonesupport Holding and JonDeTech Sensors
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bonesupport and JonDeTech is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Bonesupport Holding AB and JonDeTech Sensors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JonDeTech Sensors and Bonesupport Holding 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 Bonesupport Holding AB are associated (or correlated) with JonDeTech Sensors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JonDeTech Sensors has no effect on the direction of Bonesupport Holding i.e., Bonesupport Holding and JonDeTech Sensors go up and down completely randomly.
Pair Corralation between Bonesupport Holding and JonDeTech Sensors
Assuming the 90 days trading horizon Bonesupport Holding AB is expected to generate 0.26 times more return on investment than JonDeTech Sensors. However, Bonesupport Holding AB is 3.92 times less risky than JonDeTech Sensors. It trades about 0.14 of its potential returns per unit of risk. JonDeTech Sensors is currently generating about -0.02 per unit of risk. If you would invest 7,855 in Bonesupport Holding AB on September 25, 2024 and sell it today you would earn a total of 30,845 from holding Bonesupport Holding AB or generate 392.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bonesupport Holding AB vs. JonDeTech Sensors
Performance |
| Timeline |
| Bonesupport Holding |
| JonDeTech Sensors |
Bonesupport Holding and JonDeTech Sensors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bonesupport Holding and JonDeTech Sensors
The main advantage of trading using opposite Bonesupport Holding and JonDeTech Sensors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bonesupport Holding position performs unexpectedly, JonDeTech Sensors 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 JonDeTech Sensors will offset losses from the drop in JonDeTech Sensors' long position.| Bonesupport Holding vs. BioInvent International AB | Bonesupport Holding vs. Orexo AB | Bonesupport Holding vs. Swedish Orphan Biovitrum | Bonesupport Holding vs. Anoto Group AB |
| JonDeTech Sensors vs. Hexatronic Group AB | JonDeTech Sensors vs. Instalco Intressenter AB | JonDeTech Sensors vs. NOTE AB | JonDeTech Sensors vs. Dometic Group AB |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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