Correlation Between Bonheur and Everfuel
Can any of the company-specific risk be diversified away by investing in both Bonheur and Everfuel 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 Bonheur and Everfuel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bonheur and Everfuel AS, you can compare the effects of market volatilities on Bonheur and Everfuel 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 Bonheur with a short position of Everfuel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bonheur and Everfuel.
Diversification Opportunities for Bonheur and Everfuel
Average diversification
The 3 months correlation between Bonheur and Everfuel is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Bonheur and Everfuel AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Everfuel AS and Bonheur 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 Bonheur are associated (or correlated) with Everfuel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Everfuel AS has no effect on the direction of Bonheur i.e., Bonheur and Everfuel go up and down completely randomly.
Pair Corralation between Bonheur and Everfuel
Assuming the 90 days trading horizon Bonheur is expected to generate 3.79 times less return on investment than Everfuel. But when comparing it to its historical volatility, Bonheur is 3.03 times less risky than Everfuel. It trades about 0.04 of its potential returns per unit of risk. Everfuel AS is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 848.00 in Everfuel AS on September 14, 2024 and sell it today you would earn a total of 444.00 from holding Everfuel AS or generate 52.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bonheur vs. Everfuel AS
Performance |
| Timeline |
| Bonheur |
| Everfuel AS |
Bonheur and Everfuel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bonheur and Everfuel
The main advantage of trading using opposite Bonheur and Everfuel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bonheur position performs unexpectedly, Everfuel 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 Everfuel will offset losses from the drop in Everfuel's long position.| Bonheur vs. Cloudberry Clean Energy | Bonheur vs. Aker ASA | Bonheur vs. Scatec Solar OL | Bonheur vs. Borregaard ASA |
| Everfuel vs. Bonheur | Everfuel vs. Kongsberg Gruppen ASA | Everfuel vs. Napatech AS | Everfuel vs. Elkem ASA |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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