Correlation Between Enlight Renewable and Bonus Biogroup
Can any of the company-specific risk be diversified away by investing in both Enlight Renewable 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 Enlight Renewable and Bonus Biogroup into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enlight Renewable Energy and Bonus Biogroup, you can compare the effects of market volatilities on Enlight Renewable 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 Enlight Renewable with a short position of Bonus Biogroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enlight Renewable and Bonus Biogroup.
Diversification Opportunities for Enlight Renewable and Bonus Biogroup
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Enlight and Bonus is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Enlight Renewable Energy and Bonus Biogroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bonus Biogroup and Enlight Renewable 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 Enlight Renewable Energy 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 Enlight Renewable i.e., Enlight Renewable and Bonus Biogroup go up and down completely randomly.
Pair Corralation between Enlight Renewable and Bonus Biogroup
Assuming the 90 days trading horizon Enlight Renewable Energy is expected to generate 1.33 times more return on investment than Bonus Biogroup. However, Enlight Renewable is 1.33 times more volatile than Bonus Biogroup. It trades about 0.04 of its potential returns per unit of risk. Bonus Biogroup is currently generating about -0.33 per unit of risk. If you would invest 600,000 in Enlight Renewable Energy on August 31, 2024 and sell it today you would earn a total of 6,600 from holding Enlight Renewable Energy or generate 1.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enlight Renewable Energy vs. Bonus Biogroup
Performance |
| Timeline |
| Enlight Renewable Energy |
| Bonus Biogroup |
Enlight Renewable and Bonus Biogroup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enlight Renewable and Bonus Biogroup
The main advantage of trading using opposite Enlight Renewable and Bonus Biogroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enlight Renewable 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.| Enlight Renewable vs. Energix Renewable Energies | Enlight Renewable vs. Doral Group Renewable | Enlight Renewable vs. Elbit Systems | Enlight Renewable vs. Electreon Wireless |
| Bonus Biogroup vs. Kamada | Bonus Biogroup vs. Bezeq Israeli Telecommunication | Bonus Biogroup vs. Brainsway | Bonus Biogroup vs. Mivne Real Estate |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |