Correlation Between AULT Old and Bonso Electronics
Can any of the company-specific risk be diversified away by investing in both AULT Old 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 AULT Old and Bonso Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AULT Old and Bonso Electronics International, you can compare the effects of market volatilities on AULT Old 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 AULT Old with a short position of Bonso Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of AULT Old and Bonso Electronics.
Diversification Opportunities for AULT Old and Bonso Electronics
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AULT and Bonso is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AULT Old and Bonso Electronics Internationa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bonso Electronics and AULT Old 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 AULT Old 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 AULT Old i.e., AULT Old and Bonso Electronics go up and down completely randomly.
Pair Corralation between AULT Old and Bonso Electronics
If you would invest (100.00) in Bonso Electronics International on December 27, 2024 and sell it today you would earn a total of 100.00 from holding Bonso Electronics International or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
AULT Old vs. Bonso Electronics Internationa
Performance |
Timeline |
AULT Old |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Bonso Electronics |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
AULT Old and Bonso Electronics Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with AULT Old and Bonso Electronics
The main advantage of trading using opposite AULT Old and Bonso Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AULT Old 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.AULT Old vs. Wabash National | AULT Old vs. BorgWarner | AULT Old vs. Treace Medical Concepts | AULT Old vs. Aquestive Therapeutics |
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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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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