Correlation Between Bonus Biogroup and Allmed Solutions
Can any of the company-specific risk be diversified away by investing in both Bonus Biogroup and Allmed Solutions 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 Bonus Biogroup and Allmed Solutions into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bonus Biogroup and Allmed Solutions, you can compare the effects of market volatilities on Bonus Biogroup and Allmed Solutions 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 Bonus Biogroup with a short position of Allmed Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bonus Biogroup and Allmed Solutions.
Diversification Opportunities for Bonus Biogroup and Allmed Solutions
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bonus and Allmed is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Bonus Biogroup and Allmed Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allmed Solutions and Bonus Biogroup 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 Bonus Biogroup are associated (or correlated) with Allmed Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allmed Solutions has no effect on the direction of Bonus Biogroup i.e., Bonus Biogroup and Allmed Solutions go up and down completely randomly.
Pair Corralation between Bonus Biogroup and Allmed Solutions
Assuming the 90 days trading horizon Bonus Biogroup is expected to under-perform the Allmed Solutions. But the stock apears to be less risky and, when comparing its historical volatility, Bonus Biogroup is 3.74 times less risky than Allmed Solutions. The stock trades about -0.42 of its potential returns per unit of risk. The Allmed Solutions is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 3,560 in Allmed Solutions on September 3, 2024 and sell it today you would earn a total of 360.00 from holding Allmed Solutions or generate 10.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bonus Biogroup vs. Allmed Solutions
Performance |
| Timeline |
| Bonus Biogroup |
| Allmed Solutions |
Bonus Biogroup and Allmed Solutions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bonus Biogroup and Allmed Solutions
The main advantage of trading using opposite Bonus Biogroup and Allmed Solutions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bonus Biogroup position performs unexpectedly, Allmed Solutions 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 Allmed Solutions will offset losses from the drop in Allmed Solutions' long position.| Bonus Biogroup vs. Bezeq Israeli Telecommunication | Bonus Biogroup vs. El Al Israel | Bonus Biogroup vs. Bank Leumi Le Israel | Bonus Biogroup vs. Elbit Systems |
| Allmed Solutions vs. BioLine RX | Allmed Solutions vs. Bonus Biogroup | Allmed Solutions vs. Clal Biotechnology Industries | Allmed Solutions vs. Augwind Energy Tech |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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