Correlation Between Bonheur and Endur ASA
Can any of the company-specific risk be diversified away by investing in both Bonheur and Endur ASA 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 Endur ASA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bonheur and Endur ASA, you can compare the effects of market volatilities on Bonheur and Endur ASA 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 Endur ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bonheur and Endur ASA.
Diversification Opportunities for Bonheur and Endur ASA
Very good diversification
The 3 months correlation between Bonheur and Endur is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Bonheur and Endur ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Endur ASA 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 Endur ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Endur ASA has no effect on the direction of Bonheur i.e., Bonheur and Endur ASA go up and down completely randomly.
Pair Corralation between Bonheur and Endur ASA
Assuming the 90 days trading horizon Bonheur is expected to under-perform the Endur ASA. In addition to that, Bonheur is 1.5 times more volatile than Endur ASA. It trades about -0.13 of its total potential returns per unit of risk. Endur ASA is currently generating about 0.3 per unit of volatility. If you would invest 5,920 in Endur ASA on August 28, 2024 and sell it today you would earn a total of 400.00 from holding Endur ASA or generate 6.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bonheur vs. Endur ASA
Performance |
| Timeline |
| Bonheur |
| Endur ASA |
Bonheur and Endur ASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bonheur and Endur ASA
The main advantage of trading using opposite Bonheur and Endur ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bonheur position performs unexpectedly, Endur ASA 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 Endur ASA will offset losses from the drop in Endur ASA's long position.| Bonheur vs. Cloudberry Clean Energy | Bonheur vs. Aker ASA | Bonheur vs. Scatec Solar OL | Bonheur vs. Borregaard ASA |
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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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