Correlation Between Blacksky Technology and Bonso Electronics
Can any of the company-specific risk be diversified away by investing in both Blacksky 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 Blacksky 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 Blacksky Technology and Bonso Electronics International, you can compare the effects of market volatilities on Blacksky 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 Blacksky Technology with a short position of Bonso Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blacksky Technology and Bonso Electronics.
Diversification Opportunities for Blacksky Technology and Bonso Electronics
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Blacksky and Bonso is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Blacksky Technology and Bonso Electronics Internationa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bonso Electronics and Blacksky 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 Blacksky Technology 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 Blacksky Technology i.e., Blacksky Technology and Bonso Electronics go up and down completely randomly.
Pair Corralation between Blacksky Technology and Bonso Electronics
If you would invest 1,164 in Blacksky Technology on October 27, 2024 and sell it today you would earn a total of 332.00 from holding Blacksky Technology or generate 28.52% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 5.26% |
Values | Daily Returns |
Blacksky Technology vs. Bonso Electronics Internationa
Performance |
Timeline |
Blacksky Technology |
Bonso Electronics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Blacksky Technology and Bonso Electronics Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Blacksky Technology and Bonso Electronics
The main advantage of trading using opposite Blacksky Technology and Bonso Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blacksky 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.Blacksky Technology vs. Focus Universal | Blacksky Technology vs. ESCO Technologies | Blacksky Technology vs. Genasys | Blacksky Technology vs. Darkpulse |
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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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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