Correlation Between Bonus Biogroup and Intercure

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

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

Diversification Opportunities for Bonus Biogroup and Intercure

0.86

Correlation Coefficient

Bonus Biogroup  Intercure

Very poor diversification

The 3 months correlation between Bonus and Intercure is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Bonus Biogroup and Intercure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intercure and Bonus Biogroup 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 Bonus Biogroup are associated (or correlated) with Intercure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intercure has no effect on the direction of Bonus Biogroup i.e., Bonus Biogroup and Intercure go up and down completely randomly.

Pair Corralation between Bonus Biogroup and Intercure

Assuming the 90 days trading horizon Bonus Biogroup is expected to under-perform the Intercure. But the stock apears to be less risky and, when comparing its historical volatility, Bonus Biogroup is 1.17 times less risky than Intercure. The stock trades about -0.02 of its potential returns per unit of risk. The Intercure is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  62,000  in Intercure on September 26, 2024 and sell it today you would earn a total of  1,800  from holding Intercure or generate 2.9% return on investment over 90 days.

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

Bonus Biogroup  vs.  Intercure

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.

Intercure

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Intercure has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Bonus Biogroup and Intercure

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

The idea behind Bonus Biogroup and Intercure 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.