Correlation Between Ocean Sun and Bonheur
Can any of the company-specific risk be diversified away by investing in both Ocean Sun and Bonheur 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 Ocean Sun and Bonheur into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ocean Sun As and Bonheur, you can compare the effects of market volatilities on Ocean Sun and Bonheur 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 Ocean Sun with a short position of Bonheur. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ocean Sun and Bonheur.
Diversification Opportunities for Ocean Sun and Bonheur
Very weak diversification
The 3 months correlation between Ocean and Bonheur is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Ocean Sun As and Bonheur in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bonheur and Ocean Sun 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 Ocean Sun As are associated (or correlated) with Bonheur. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bonheur has no effect on the direction of Ocean Sun i.e., Ocean Sun and Bonheur go up and down completely randomly.
Pair Corralation between Ocean Sun and Bonheur
Assuming the 90 days trading horizon Ocean Sun As is expected to under-perform the Bonheur. In addition to that, Ocean Sun is 2.32 times more volatile than Bonheur. It trades about -0.03 of its total potential returns per unit of risk. Bonheur is currently generating about 0.01 per unit of volatility. If you would invest 27,801 in Bonheur on September 4, 2024 and sell it today you would lose (701.00) from holding Bonheur or give up 2.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ocean Sun As vs. Bonheur
Performance |
| Timeline |
| Ocean Sun As |
| Bonheur |
Ocean Sun and Bonheur Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ocean Sun and Bonheur
The main advantage of trading using opposite Ocean Sun and Bonheur positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ocean Sun position performs unexpectedly, Bonheur 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 Bonheur will offset losses from the drop in Bonheur's long position.| Ocean Sun vs. Lea Bank ASA | Ocean Sun vs. Nordic Mining ASA | Ocean Sun vs. Aasen Sparebank | Ocean Sun vs. Beerenberg AS |
| Bonheur vs. Cloudberry Clean Energy | Bonheur vs. Aker ASA | Bonheur vs. Scatec Solar OL | Bonheur vs. Borregaard ASA |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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