Correlation Between Fox Wizel and Bonus Biogroup
Can any of the company-specific risk be diversified away by investing in both Fox Wizel 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 Fox Wizel and Bonus Biogroup into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fox Wizel and Bonus Biogroup, you can compare the effects of market volatilities on Fox Wizel 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 Fox Wizel with a short position of Bonus Biogroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fox Wizel and Bonus Biogroup.
Diversification Opportunities for Fox Wizel and Bonus Biogroup
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Fox and Bonus is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Fox Wizel and Bonus Biogroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bonus Biogroup and Fox Wizel 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 Fox Wizel 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 Fox Wizel i.e., Fox Wizel and Bonus Biogroup go up and down completely randomly.
Pair Corralation between Fox Wizel and Bonus Biogroup
Assuming the 90 days trading horizon Fox Wizel is expected to generate 0.81 times more return on investment than Bonus Biogroup. However, Fox Wizel is 1.23 times less risky than Bonus Biogroup. It trades about 0.0 of its potential returns per unit of risk. Bonus Biogroup is currently generating about -0.03 per unit of risk. If you would invest 3,085,702 in Fox Wizel on September 2, 2024 and sell it today you would lose (241,702) from holding Fox Wizel or give up 7.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fox Wizel vs. Bonus Biogroup
Performance |
| Timeline |
| Fox Wizel |
| Bonus Biogroup |
Fox Wizel and Bonus Biogroup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fox Wizel and Bonus Biogroup
The main advantage of trading using opposite Fox Wizel and Bonus Biogroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fox Wizel 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.| Fox Wizel vs. Azrieli Group | Fox Wizel vs. Shufersal | Fox Wizel vs. Rami Levi | Fox Wizel vs. Fattal 1998 Holdings |
| Bonus Biogroup vs. Wesure Global Tech | Bonus Biogroup vs. Ormat Technologies | Bonus Biogroup vs. Nrgene Technologies | Bonus Biogroup vs. Tedea Technological Development |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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