Correlation Between Gencell and Bonus Biogroup
Can any of the company-specific risk be diversified away by investing in both Gencell 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 Gencell and Bonus Biogroup into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gencell and Bonus Biogroup, you can compare the effects of market volatilities on Gencell 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 Gencell with a short position of Bonus Biogroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gencell and Bonus Biogroup.
Diversification Opportunities for Gencell and Bonus Biogroup
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gencell and Bonus is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Gencell and Bonus Biogroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bonus Biogroup and Gencell 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 Gencell 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 Gencell i.e., Gencell and Bonus Biogroup go up and down completely randomly.
Pair Corralation between Gencell and Bonus Biogroup
Assuming the 90 days trading horizon Gencell is expected to generate 1.39 times more return on investment than Bonus Biogroup. However, Gencell is 1.39 times more volatile than Bonus Biogroup. It trades about -0.17 of its potential returns per unit of risk. Bonus Biogroup is currently generating about -0.33 per unit of risk. If you would invest 5,500 in Gencell on August 31, 2024 and sell it today you would lose (390.00) from holding Gencell or give up 7.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gencell vs. Bonus Biogroup
Performance |
| Timeline |
| Gencell |
| Bonus Biogroup |
Gencell and Bonus Biogroup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gencell and Bonus Biogroup
The main advantage of trading using opposite Gencell and Bonus Biogroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gencell 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.| Gencell vs. One Software Technologies | Gencell vs. IBI Mutual Funds | Gencell vs. Discount Investment Corp | Gencell vs. More Mutual Funds |
| 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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