Correlation Between Bunge and Vroom

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Bunge and Vroom 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 Bunge and Vroom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bunge and Vroom Inc, you can compare the effects of market volatilities on Bunge and Vroom 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 Bunge with a short position of Vroom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bunge and Vroom.

Diversification Opportunities for Bunge and Vroom

0.12
  Correlation Coefficient

Average diversification

The 3 months correlation between Bunge and Vroom is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Bunge and Vroom Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vroom Inc and Bunge 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 Bunge are associated (or correlated) with Vroom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vroom Inc has no effect on the direction of Bunge i.e., Bunge and Vroom go up and down completely randomly.

Pair Corralation between Bunge and Vroom

Allowing for the 90-day total investment horizon Bunge is expected to generate 3.8 times less return on investment than Vroom. But when comparing it to its historical volatility, Bunge is 4.26 times less risky than Vroom. It trades about 0.17 of its potential returns per unit of risk. Vroom Inc is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  104.00  in Vroom Inc on August 29, 2022 and sell it today you would earn a total of  20.00  from holding Vroom Inc or generate 19.23% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Bunge  vs.  Vroom Inc

 Performance (%) 
       Timeline  
Bunge 
Bunge Performance
0 of 100
Over the last 90 days Bunge has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Bunge is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Bunge Price Channel

Vroom Inc 
Vroom Performance
0 of 100
Over the last 90 days Vroom Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Even with unsteady performance in the last few months, the Stock's basic indicators remain relatively steady which may send shares a bit higher in December 2022. The new chaos may also be a sign of medium-term up-swing for the company stakeholders.

Vroom Price Channel

Bunge and Vroom Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Bunge and Vroom

The main advantage of trading using opposite Bunge and Vroom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bunge position performs unexpectedly, Vroom 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 Vroom will offset losses from the drop in Vroom's long position.
Bunge vs. Andersons
Bunge vs. Seaboard Corp
Bunge vs. Tantech Holdings
Bunge vs. CYTRX CORP
The idea behind Bunge and Vroom Inc 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.
Vroom vs. Zhongsheng Group Holdings
Vroom vs. CarMax Inc
Vroom vs. Penske Automotive Group
Vroom vs. Autonation
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.

Other Complementary Tools

Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Go
Volatility Analysis
Get historical volatility and risk analysis based on latest market data
Go
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Go
Price Ceiling Movement
Calculate and plot Price Ceiling Movement for different equity instruments
Go
Aroon Oscillator
Analyze current equity momentum using Aroon Oscillator and other momentum ratios
Go
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Go
Analyst Recommendations
Analyst recommendations and target price estimates broken down by several categories
Go
Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities
Go
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Go
Analyst Recommendations
Analyst recommendations and target price estimates broken down by several categories
Go
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Go
Premium Stories
Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope
Go