Correlation Between Bon Natural and Grand Havana
Can any of the company-specific risk be diversified away by investing in both Bon Natural and Grand Havana 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 Bon Natural and Grand Havana into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bon Natural Life and Grand Havana, you can compare the effects of market volatilities on Bon Natural and Grand Havana 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 Bon Natural with a short position of Grand Havana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bon Natural and Grand Havana.
Diversification Opportunities for Bon Natural and Grand Havana
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bon and Grand is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Bon Natural Life and Grand Havana in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grand Havana and Bon Natural 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 Bon Natural Life are associated (or correlated) with Grand Havana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grand Havana has no effect on the direction of Bon Natural i.e., Bon Natural and Grand Havana go up and down completely randomly.
Pair Corralation between Bon Natural and Grand Havana
Considering the 90-day investment horizon Bon Natural Life is expected to under-perform the Grand Havana. But the stock apears to be less risky and, when comparing its historical volatility, Bon Natural Life is 1.9 times less risky than Grand Havana. The stock trades about -0.13 of its potential returns per unit of risk. The Grand Havana is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 0.07 in Grand Havana on December 1, 2024 and sell it today you would earn a total of 0.00 from holding Grand Havana or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 98.36% |
Values | Daily Returns |
Bon Natural Life vs. Grand Havana
Performance |
Timeline |
Bon Natural Life |
Grand Havana |
Bon Natural and Grand Havana Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bon Natural and Grand Havana
The main advantage of trading using opposite Bon Natural and Grand Havana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bon Natural position performs unexpectedly, Grand Havana 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 Grand Havana will offset losses from the drop in Grand Havana's long position.Bon Natural vs. Grand Havana | Bon Natural vs. Central Garden Pet | Bon Natural vs. Natures Sunshine Products | Bon Natural vs. Central Garden Pet |
Grand Havana vs. Right On Brands | Grand Havana vs. BioAdaptives | Grand Havana vs. Yuenglings Ice Cream | Grand Havana vs. Bit Origin |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
Commodity Channel Use Commodity Channel Index to analyze current equity momentum |