Correlation Between Matricelf and Bonus Biogroup

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

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

Diversification Opportunities for Matricelf and Bonus Biogroup

-0.47

Correlation Coefficient

Matricelf  Bonus Biogroup

Very good diversification

The 3 months correlation between Matricelf and Bonus is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Matricelf and Bonus Biogroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bonus Biogroup and Matricelf 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 Matricelf 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 Matricelf i.e., Matricelf and Bonus Biogroup go up and down completely randomly.

Pair Corralation between Matricelf and Bonus Biogroup

Assuming the 90 days trading horizon Matricelf is expected to generate 1.0 times more return on investment than Bonus Biogroup. However, Matricelf is 1.0 times more volatile than Bonus Biogroup. It trades about -0.02 of its potential returns per unit of risk. Bonus Biogroup is currently generating about -0.21 per unit of risk. If you would invest  36,130  in Matricelf on September 15, 2024 and sell it today you would lose (980.00) from holding Matricelf or give up 2.71% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Matricelf  vs.  Bonus Biogroup

Matricelf

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Matricelf has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Matricelf is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the 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 Matricelf and Bonus Biogroup

The main advantage of trading using opposite Matricelf and Bonus Biogroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Matricelf 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 Matricelf 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.