Correlation Between Mind Technology and Bonso Electronics
Can any of the company-specific risk be diversified away by investing in both Mind Technology 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 Mind Technology and Bonso Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mind Technology Pref and Bonso Electronics International, you can compare the effects of market volatilities on Mind Technology 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 Mind Technology with a short position of Bonso Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mind Technology and Bonso Electronics.
Diversification Opportunities for Mind Technology and Bonso Electronics
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Mind and Bonso is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Mind Technology Pref and Bonso Electronics Internationa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bonso Electronics and Mind Technology 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 Mind Technology Pref 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 Mind Technology i.e., Mind Technology and Bonso Electronics go up and down completely randomly.
Pair Corralation between Mind Technology and Bonso Electronics
Assuming the 90 days horizon Mind Technology Pref is expected to under-perform the Bonso Electronics. But the preferred stock apears to be less risky and, when comparing its historical volatility, Mind Technology Pref is 2.71 times less risky than Bonso Electronics. The preferred stock trades about 0.0 of its potential returns per unit of risk. The Bonso Electronics International is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 279.00 in Bonso Electronics International on August 27, 2024 and sell it today you would lose (20.00) from holding Bonso Electronics International or give up 7.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 10.76% |
| Values | Daily Returns |
Mind Technology Pref vs. Bonso Electronics Internationa
Performance |
| Timeline |
| Mind Technology Pref |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Bonso Electronics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Mind Technology and Bonso Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mind Technology and Bonso Electronics
The main advantage of trading using opposite Mind Technology and Bonso Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mind Technology 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.| Mind Technology vs. Kraken Robotics | Mind Technology vs. SaverOne 2014 Ltd | Mind Technology vs. Focus Universal | Mind Technology vs. Nanalysis Scientific Corp |
| Bonso Electronics vs. Cepton Inc | Bonso Electronics vs. SaverOne 2014 Ltd | Bonso Electronics vs. Genasys | Bonso Electronics vs. Kraken Robotics |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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