Correlation Between Bonus Biogroup and Nextgen
Can any of the company-specific risk be diversified away by investing in both Bonus Biogroup and Nextgen 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 Nextgen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bonus Biogroup and Nextgen, you can compare the effects of market volatilities on Bonus Biogroup and Nextgen 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 Nextgen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bonus Biogroup and Nextgen.
Diversification Opportunities for Bonus Biogroup and Nextgen
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bonus and Nextgen is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Bonus Biogroup and Nextgen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nextgen 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 Nextgen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nextgen has no effect on the direction of Bonus Biogroup i.e., Bonus Biogroup and Nextgen go up and down completely randomly.
Pair Corralation between Bonus Biogroup and Nextgen
Assuming the 90 days trading horizon Bonus Biogroup is expected to generate 0.42 times more return on investment than Nextgen. However, Bonus Biogroup is 2.38 times less risky than Nextgen. It trades about -0.03 of its potential returns per unit of risk. Nextgen is currently generating about -0.08 per unit of risk. If you would invest 1,650 in Bonus Biogroup on September 2, 2024 and sell it today you would lose (570.00) from holding Bonus Biogroup or give up 34.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bonus Biogroup vs. Nextgen
Performance |
| Timeline |
| Bonus Biogroup |
| Nextgen |
Bonus Biogroup and Nextgen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bonus Biogroup and Nextgen
The main advantage of trading using opposite Bonus Biogroup and Nextgen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bonus Biogroup position performs unexpectedly, Nextgen 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 Nextgen will offset losses from the drop in Nextgen's long position.| Bonus Biogroup vs. Wesure Global Tech | Bonus Biogroup vs. Ormat Technologies | Bonus Biogroup vs. Nrgene Technologies | Bonus Biogroup vs. Tedea Technological Development |
| Nextgen vs. Magic Software Enterprises | Nextgen vs. Batm Advanced Communications | Nextgen vs. B Communications | Nextgen vs. Computer Direct |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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