Correlation Between Germina Agribusiness and BONAS IMPORT

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

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

Diversification Opportunities for Germina Agribusiness and BONAS IMPORT

-0.03

Correlation Coefficient

Germina Agribusiness  BONAS IMPORT

Good diversification

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

Pair Corralation between Germina Agribusiness and BONAS IMPORT

Assuming the 90 days trading horizon Germina Agribusiness SA is expected to generate 0.56 times more return on investment than BONAS IMPORT. However, Germina Agribusiness SA is 1.8 times less risky than BONAS IMPORT. It trades about 0.04 of its potential returns per unit of risk. BONAS IMPORT EXPORT is currently generating about 0.0 per unit of risk. 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

Germina Agribusiness SA  vs.  BONAS IMPORT EXPORT

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.

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.

Pair Trading with Germina Agribusiness and BONAS IMPORT

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

The idea behind Germina Agribusiness SA and BONAS IMPORT EXPORT 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.