Correlation Between Foresight Autonomous and Bonus Biogroup

Can any of the company-specific risk be diversified away by investing in both Foresight Autonomous and Bonus Biogroup 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 Foresight Autonomous and Bonus Biogroup into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Foresight Autonomous Holdings and Bonus Biogroup, you can compare the effects of market volatilities on Foresight Autonomous and Bonus Biogroup 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 Foresight Autonomous with a short position of Bonus Biogroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of Foresight Autonomous and Bonus Biogroup.

Diversification Opportunities for Foresight Autonomous and Bonus Biogroup

0.87

Correlation Coefficient

Foresight Autonomous  Bonus Biogroup

Very poor diversification

The 3 months correlation between Foresight and Bonus is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Foresight Autonomous Holdings and Bonus Biogroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bonus Biogroup and Foresight Autonomous 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 Foresight Autonomous Holdings are associated (or correlated) with Bonus Biogroup. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bonus Biogroup has no effect on the direction of Foresight Autonomous i.e., Foresight Autonomous and Bonus Biogroup go up and down completely randomly.

Pair Corralation between Foresight Autonomous and Bonus Biogroup

Assuming the 90 days trading horizon Foresight Autonomous Holdings is expected to generate 1.1 times more return on investment than Bonus Biogroup. However, Foresight Autonomous is 1.1 times more volatile than Bonus Biogroup. It trades about 0.01 of its potential returns per unit of risk. Bonus Biogroup is currently generating about -0.27 per unit of risk. If you would invest  820.00  in Foresight Autonomous Holdings on September 12, 2024 and sell it today you would earn a total of  0.00  from holding Foresight Autonomous Holdings or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

Foresight Autonomous Holdings  vs.  Bonus Biogroup

Foresight Autonomous

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Foresight Autonomous Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Bonus Biogroup

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Bonus Biogroup has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Foresight Autonomous and Bonus Biogroup

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

The idea behind Foresight Autonomous Holdings and Bonus Biogroup 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.