Correlation Between BONAS IMPORT and Germina Agribusiness

Can any of the company-specific risk be diversified away by investing in both BONAS IMPORT and Germina Agribusiness 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 BONAS IMPORT and Germina Agribusiness into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between BONAS IMPORT EXPORT and Germina Agribusiness SA, you can compare the effects of market volatilities on BONAS IMPORT and Germina Agribusiness 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 BONAS IMPORT with a short position of Germina Agribusiness. Check out your portfolio center. Please also check ongoing floating volatility patterns of BONAS IMPORT and Germina Agribusiness.

Diversification Opportunities for BONAS IMPORT and Germina Agribusiness

-0.03

Correlation Coefficient

BONAS IMPORT  Germina Agribusiness

Good diversification

The 3 months correlation between BONAS and Germina is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding BONAS IMPORT EXPORT and Germina Agribusiness SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Germina Agribusiness and BONAS IMPORT 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 BONAS IMPORT EXPORT are associated (or correlated) with Germina Agribusiness. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Germina Agribusiness has no effect on the direction of BONAS IMPORT i.e., BONAS IMPORT and Germina Agribusiness go up and down completely randomly.

Pair Corralation between BONAS IMPORT and Germina Agribusiness

Assuming the 90 days trading horizon BONAS IMPORT is expected to generate 6.21 times less return on investment than Germina Agribusiness. In addition to that, BONAS IMPORT is 1.8 times more volatile than Germina Agribusiness SA. It trades about 0.0 of its total potential returns per unit of risk. Germina Agribusiness SA is currently generating about 0.04 per unit of volatility. If you would invest  163.00  in Germina Agribusiness SA on December 23, 2024 and sell it today you would earn a total of  6.00  from holding Germina Agribusiness SA or generate 3.68% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	73.68%
Values	Daily Returns

BONAS IMPORT EXPORT  vs.  Germina Agribusiness SA

BONAS IMPORT EXPORT

Risk-Adjusted Performance

Very Weak

Over the last 90 days BONAS IMPORT EXPORT has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, BONAS IMPORT is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Germina Agribusiness

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Germina Agribusiness SA are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Germina Agribusiness may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with BONAS IMPORT and Germina Agribusiness

The main advantage of trading using opposite BONAS IMPORT and Germina Agribusiness positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BONAS IMPORT position performs unexpectedly, Germina Agribusiness 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 Germina Agribusiness will offset losses from the drop in Germina Agribusiness' long position.

The idea behind BONAS IMPORT EXPORT and Germina Agribusiness SA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.