Correlation Between Flexpoint Sensor and Bonso Electronics
Can any of the company-specific risk be diversified away by investing in both Flexpoint Sensor and Bonso Electronics 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 Flexpoint Sensor and Bonso Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Flexpoint Sensor Systems and Bonso Electronics International, you can compare the effects of market volatilities on Flexpoint Sensor and Bonso Electronics 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 Flexpoint Sensor with a short position of Bonso Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flexpoint Sensor and Bonso Electronics.
Diversification Opportunities for Flexpoint Sensor and Bonso Electronics
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Flexpoint and Bonso is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Flexpoint Sensor Systems and Bonso Electronics Internationa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bonso Electronics and Flexpoint Sensor 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 Flexpoint Sensor Systems are associated (or correlated) with Bonso Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bonso Electronics has no effect on the direction of Flexpoint Sensor i.e., Flexpoint Sensor and Bonso Electronics go up and down completely randomly.
Pair Corralation between Flexpoint Sensor and Bonso Electronics
If you would invest 0.26 in Flexpoint Sensor Systems on November 1, 2024 and sell it today you would lose (0.05) from holding Flexpoint Sensor Systems or give up 19.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 5.26% |
| Values | Daily Returns |
Flexpoint Sensor Systems vs. Bonso Electronics Internationa
Performance |
| Timeline |
| Flexpoint Sensor Systems |
| Bonso Electronics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Flexpoint Sensor and Bonso Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flexpoint Sensor and Bonso Electronics
The main advantage of trading using opposite Flexpoint Sensor and Bonso Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flexpoint Sensor position performs unexpectedly, Bonso Electronics 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 Bonso Electronics will offset losses from the drop in Bonso Electronics' long position.| Flexpoint Sensor vs. Electronic Sensor Technology | Flexpoint Sensor vs. 3Dx Industries | Flexpoint Sensor vs. Cavitation Techs |
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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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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