Correlation Between Otovo AS and Bonheur
Can any of the company-specific risk be diversified away by investing in both Otovo AS and Bonheur 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 Otovo AS and Bonheur into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Otovo AS and Bonheur, you can compare the effects of market volatilities on Otovo AS and Bonheur 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 Otovo AS with a short position of Bonheur. Check out your portfolio center. Please also check ongoing floating volatility patterns of Otovo AS and Bonheur.
Diversification Opportunities for Otovo AS and Bonheur
Weak diversification
The 3 months correlation between Otovo and Bonheur is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Otovo AS and Bonheur in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bonheur and Otovo AS 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 Otovo AS are associated (or correlated) with Bonheur. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bonheur has no effect on the direction of Otovo AS i.e., Otovo AS and Bonheur go up and down completely randomly.
Pair Corralation between Otovo AS and Bonheur
Assuming the 90 days trading horizon Otovo AS is expected to under-perform the Bonheur. In addition to that, Otovo AS is 3.77 times more volatile than Bonheur. It trades about -0.02 of its total potential returns per unit of risk. Bonheur is currently generating about 0.03 per unit of volatility. If you would invest 26,450 in Bonheur on September 6, 2024 and sell it today you would earn a total of 500.00 from holding Bonheur or generate 1.89% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 98.46% |
Values | Daily Returns |
Otovo AS vs. Bonheur
Performance |
Timeline |
Otovo AS |
Bonheur |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
Otovo AS and Bonheur Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Otovo AS and Bonheur
The main advantage of trading using opposite Otovo AS and Bonheur positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Otovo AS position performs unexpectedly, Bonheur 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 Bonheur will offset losses from the drop in Bonheur's long position.Otovo AS vs. Clean Seas Seafood | Otovo AS vs. Sparebank 1 SMN | Otovo AS vs. Aasen Sparebank | Otovo AS vs. Goodtech |
Bonheur vs. Cloudberry Clean Energy | Bonheur vs. Aker ASA | Bonheur vs. Scatec Solar OL | Bonheur vs. Borregaard ASA |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |