Correlation Between CSL and Bonus BioGroup

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Can any of the company-specific risk be diversified away by investing in both CSL and Bonus BioGroup 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 CSL and Bonus BioGroup into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CSL Limited and Bonus BioGroup, you can compare the effects of market volatilities on CSL and Bonus BioGroup 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 CSL with a short position of Bonus BioGroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSL and Bonus BioGroup.

Diversification Opportunities for CSL and Bonus BioGroup

0.67
  Correlation Coefficient
 CSL

Poor diversification

The 3 months correlation between CSL and Bonus is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding CSL Limited and Bonus BioGroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bonus BioGroup and CSL 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 CSL Limited are associated (or correlated) with Bonus BioGroup. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bonus BioGroup has no effect on the direction of CSL i.e., CSL and Bonus BioGroup go up and down completely randomly.

Pair Corralation between CSL and Bonus BioGroup

If you would invest  2.00  in Bonus BioGroup on September 13, 2024 and sell it today you would earn a total of  0.00  from holding Bonus BioGroup or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy95.45%
ValuesDaily Returns

CSL Limited  vs.  Bonus BioGroup

 Performance 
       Timeline  
CSL Limited 

Risk-Adjusted Performance

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Weak
 
Strong
Very Weak
Over the last 90 days CSL Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's technical indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.
Bonus BioGroup 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Bonus BioGroup has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

CSL and Bonus BioGroup Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with CSL and Bonus BioGroup

The main advantage of trading using opposite CSL and Bonus BioGroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSL position performs unexpectedly, Bonus BioGroup 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 Bonus BioGroup will offset losses from the drop in Bonus BioGroup's long position.
CSL vs. Sino Biopharmaceutical Ltd
CSL vs. Defence Therapeutics
CSL vs. Aileron Therapeutics
CSL vs. Enlivex Therapeutics
The idea behind CSL Limited and Bonus BioGroup pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
Bonus BioGroup vs. Sino Biopharmaceutical Ltd
Bonus BioGroup vs. Defence Therapeutics
Bonus BioGroup vs. Aileron Therapeutics
Bonus BioGroup vs. Enlivex Therapeutics
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.

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